Technical view by Nooresh

Index stocks re-rated …. Time for midcaps and small caps

Sensex Technical View :
Nothing much has changed in the sensex view. 16050 on upside and 14500-14800 on downside remains the range for now. Till we dont see a move beyond it it would be better to look into stock specific moves.

Large midcaps/Midcaps/Small caps:
In the last couple of weeks or even before that the view has been to shift focus to the broad market then to look at the index as i expect the real action is there. Have been advising lot of such trades to clients and will still be doing that with small trades in large caps.
Earnings surprise, elections and many events led to a re-rating of index stocks as well as fy10-fy11 projections revised on higher side but what is missing is that the performance on the broader segment has been more surprising and interesting so similar re-rating could be possible in there which could give lot of opportunities in next few months as money would try to flow on the larger broader market.
So for next few weeks would stick to this segment !! ...

OIL and Gas :
Volumes and price build up being seen in many stocks from these sector and related stocks. Refinery companies like IOC, HPCL , BPCL and others like ONGC , GAIL , GSPL , Petronet Lng and even EKC,PSL , Nitin fire are seeing investor interest. Expect more moves in this space if we see follow up buying.

Stocks to watchout for :
Large caps or liquid names first and then a diff posts with mid cap charts ( many already sent to clients which may not be discussed here )

The stock can give a good 10-15% move if stays above 252 levels in the short term.
Sustained move above 575-580 could see a tgt of 600/640 in near term. These stocks may help the index moves.
A nice breakout in happening. Sustained volume supported move above 1230-1250 can even take the stock to previous highs of 1350-1400 in short term. Can lead the index if follow up buying seen.Can be bought on declines to 1200-1150.

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Article by Nooresh Merani

Nooresh has written 2532 articles.

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