Sensex Technical View :
- Sensex pulls back as expected and may now test the level of 13480 which is gap area. For Nifty similar level comes to 4050-4100.
- As seen in the chart the fibonacci retracement levels are placed at 13300/12300 respectively.
- Momentum line is still lower so we would keep a watch on it in coming weeks.
- Gap area is around 12272-13480. These levels correspond with the fibonacci levels.
Sensex may find a new range in coming sessions. 13300 should hold up for the next few sessions below which the next logical support comes to 12300 although there would be many moving averages firming up. So wait and watch for a new range to be formed if it breaks 13300.
This is what was mentioned before Tuesday opening
"" Investors should be highly cautious and book out of large caps and over run stocks at least to the extent of 50-60% when index starts moving above 14700Sensex /4500 Nifty or even earlier. ""
Now investors who have booked out of LT,BHEL and other large caps which they were stuck from higher levels should look to cover part of the qty at 13300-13500 which would be 10-15% lower from their price and rest keep doing in parts till 12300. This is just a cost reduction exercise.
Avaya,Patel Int , Time Techno , Kirl Oil etc gave a good move of 20-30% and one should book half the quantity to reduce acquisition costs.
PTC India did a sharp 10% move in the morning to settle lower. Look to add around 77-75 zone. Godawari did a sharp move of 20% in the day itself giving good gains.
Continue to remain bullish on Bank Of rajasthan hold.Fortis does close to tgt of 90.
Emmsons,Iwind,gonterman are risky bets keep a stop of 42/18/21.Deeper stops as high risk high return stocks for next 1-2 mths. Small exposures only.
INTRA DAY PICKS
Manugraph 48 to 57 , Zee news 42 to 48 , Escorts 55 to 58 ( closed below open ) ,Rolta 100 to 114. gave good intra day returns 8-15% as mentioned.NDTV closed in the negative keep a stop of 120.
STOCKS TO WATCHOUT FOR :
Click on chart above to enlarge.
The stock has huge resistance around 1120 range and has not crossed in last so many months. Short on rise to 1100 or if opens around 1050-1070 in parts with a target of 1020/950 in short term.
Stock has come towards breakout zone with high volumes. Buy on dips to 315/304 or if stays above 335 with a tgt price of 370/440 in medium term.
Continue to maintain weak stand on BOB , PNB and other large caps.
SMALL CAP INVESTMENT PICK ;
The stock seems to be attractive at 48-40 levels with a long term view only. Investors can buy this stock in a pyramid manner by starting 25% qty at current levels. Dont expect quick moves in the stock and hold for next 6 mths - 1 year for good appreciation.
TECHNICAL ANALYSIS SESSION MUMBAI --- JUNE 6-7
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