Technical view by Nooresh

Sensex does 16700 + …. Time to reduce at 17k for people who averaged !!! …

Should I average :

The personal view remains that index would not close below the 15300-15600 mark. So its simple if you have done right stock-picking and are convinced go ahead average on declines slowly. Start going leveraged closer to 15300-15600 range. ( Last time we did at 15300/16600 and it was fruitful)

In my last post Sunday Thoughts ---- What to do Now !!   had mentioned the above statement. This was couple of sessions before the budget.

So for those who have averaged What to do Now ?

Book the averaged quantity at levels corresponding 16800-17000 Sensex levels or on stock specific gains. This does not mean i am bearish but its part of the discipline !!! . This strategy would generate some cash which can be used for fresh trades or also as a back up again to buy on dips.

Good discipline makes money in the market !!!

Sensex Technical View :

As i have been consistently mentioning that Sensex should retrace back 50/61.8 % of the last move which comes roughly at 16700/17000 levels. Index should find resistance in higher band closer to 17k but one would expect stock specific and midcap moves to dominate from here.

Stocks to watchout for :

Fortis Healthcare one of our favorites and long term picks from 70s continues to march towards 170 …. Continue to hold on for long term growth.

Apollo Hospitals maintain our long term view and add more if closes above 720 levels.

BHEL has given a breakout. Buy on dips to 2415 stop of 2390 tgt 2470/2500 + in 1 week.

Century Textiles buy above 505.

Day call Buy HDFC Ltd arnd 2540-2550 stop 2525 tgt 2610.

KSB Pumps,Jain Irrigation have given fresh breakouts but illiquid stocks so small exposure for trading can be taken.

The focus would now soon shift to Midcaps and Small caps. So be on the lookout for some sharp moves in next 2-4 weeks.




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Article by Nooresh Merani

Nooresh has written 2531 articles.

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