Technical view by Nooresh

Volatility is back in the Sensex — Pulls back from closer to 17800

Sensex Technical View :

Before i start with the technical view the move for the day lets look into what happened in the day.

Although moving up 300 points and losing it all in the day is not something new for the Sensex which does swing wildly but traders have now become so used to the lack of volatility that this seemed like a day of panic :).

Ideally such a move is good to hit the complacent traders :).

Technically the index pulled back from 61% retracement of last downmove from 18k to 17.3k.

Also had mentioned in my last few views upside would see resistance around 17800. The days top was 17778 close to the level mentioned. Buying index was suggested around 17300 few days back.The low made is 17276 !

So following simple technical levels would have given good entry and booking points to traders .

The same range should stand for the next few days. Supports now shift to 17400 and resistance towards 17800/17950.

Stocks to watchout for :

TCS below 780-775 remains weak. Tata Motors gave a sharp move from 817 to 850 in the day ( Hope traders used it ).

Gammon Infra example of a Classical Breakout trade posted below.

Novartis/Abbot India/Aventis Pharma our defensives set for breakout moves.

Rest other stocks posted with charts below.

Article by Nooresh Merani

Nooresh has written 2532 articles.

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