Technical view by Nooresh

Dont try to predict the next big move …. Let the markets show u that !!

Sensex Technical View :
A few nothing days on the index with no major indication coming. Levels to watch remain at 15800/15350 on downside and 16500/17200 on the upside.
As i have suggested before even if markets have to correct the index may give a false breakout above the rising wedge creating an illusion. If not then the index can go to 17700-18000 if its a genuine range breakout. Basically indications for the same would be given by the market. So wait and watch.
I had mentioned about this false breakout possibility sometime back at 14700 when the Technical chartist (Technicals is an Art --- There is a difference between a hoarding / road painter and an Artist ) were again searching for a big correction.
Please do have a look at this chart posted on 23rd August suggesting a possible breakout above the trendline. Guess what --- We went long on specific stocks for the same period and now we are a little cautious......
B L Kashyap has a given a breakout above 400 and the stock can go to 480 in the medium term. ( Disclosure Client call at 375/402 )
Small cap stocks like Rishi Laser ,Hind Nat Glass , ISMT , Sharyans Resources look good with a medium term view. Please do your research. May even give good moves in short term.
Tower Talk ---- ( not a buy or sell recommendation just speculation )
ABG Shipyard and Bharti shipyard will continue to notch higher in wake of Pipava Shipyard.
Retail traders are buying out of money October puts of 4500-4600 or calls of 5300 may end up losing money.
Shirpur Gold , Kinetic Motors,Genesys seems to have struck gold in their business and may move on ckts for some time.
Punters are betting heavily on chemicals agro related stocks like Sabero , Monsanto , Nagarjuna Agrichem with 3-6 mths view.
Subex Systems,IBSEC seeing some speculative built up for short term moves.
PSU Banks seeing fresh buying and a possible technical breakout but needs to see volume support.
Chart posted below

Best Regards,

Article by Nooresh Merani

Nooresh has written 2532 articles.

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