Technical view by Nooresh

Sensex loses 1000 points from the top …Hold on to cash.

Sensex Technical View :

The index has now lost 1000 points from the high and has just hit below 14500 support levels which opens up more downside possibilities. A dead bounce ( good possibility ) should not go much above 14800-14950 for now. A move above 15300 would now negate bearish implications.
The momentum line which we have been looking at every since 8k-9k levels now comes to 13900 for the week. Gap support at 13500. So it would be a healthy move if index tests this zones in weeks to come.
The view to generate cash was mentioned clearly alongwith a detailed technical and strategy ( reduce volumes, volatility would increase, shift to defensives ) .
Hope readers have benefitted by following the discipline. Continue to conserve the profits accumulated in last 3 mths.
Stocks to watchout for :
Cadilla seems to be trying to breakout. Investors can look to take small exposures at current levels. Great Offshore hold. Insecticidies india investment pick.
RIL has broken down as expected and shud now find support arnd 1975/1850 in short term.
Castrol looks an excellent breakout on weekly charts. Buy on dips. chart posted below. Also Nagarjuna and RCAP chart and view posted. CLICK HERE
RCOM below 300 and RCAP below 895 could see more selling pressure and lose 5-7% quickly. Quick traders can keep a watch.
WEBINAR on Why to use Technical Analysis and a brief view of Sensex and other indices.
Sunday 21 June
Time 12 pm to 1 pm.
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JULY 4-5
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Article by Nooresh Merani

Nooresh has written 2531 articles.

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