Technical view by Nooresh

Sensex 17900-18400 a zone to increase cash …Stay on Sidelines- Sunday Thoughts

Sunday Thoughts:

The street has finally turned bullish in the last few days with TV screaming about new high on the index for the year. Things look pretty good but why is it that a few weeks by it seemed preposterous to even think of 18k!

Well this is how market works. Market consensus is hardly right and if its start going right then we could be near to bubble zones. Luckily as of now we are pretty stable on the sentiment side with lower leverage positions compared to previous highs.

Few weeks back the projection at 16k was to go leveraged with a view of minimum 17k then a review in June 2nd week and a pleasant surprise of new highs in July.


Markets have charted the course exactly!! Cheers to all the readers who followed the advice and made money.

For now as i have mentioned the Time Analysis suggests a topping out being in July 2nd –3rd week as the normal 40 session routine of upmove should get over in this period.

The channel suggests a top around 18300-18500 and also price analysis confirms the same but why wait for the last 200-300 points when we have already made 2000 points move from 16000.

For now i remain bullish on selective stocks with medium term view but in the near term i would like to just stay on sidelines watch the market with a good amount of cash in the portfolios.

Investors should look to hedge with Nifty shorts around 5450 or more with a stoploss of 5530. Also traders can slowly look to short on rise but avoid using high leverage as we did around 16k.

This doesnt mean am bearish over the long run but the discipline to optimize portfolio returns by increasing cash and utilizing leverage at the right time helps.

So bottomline – I remain bullish on the broader market stocks but wont cover much over the next few sessions as wont be able to follow it up and its better to be on sidelines when index doesnt look exciting. Although markets may not crash but buying an Insurance Cover ( Increasing Cash/Hedging) is always a great idea.

Continue to remain bullish on the last two small cap coverage stocks – Camlin Ltd, Navneet Publications but with long term view.


To join us in our new venture where we would provide advisory services at absolutely free of cost with your trading account with us please get in touch with our team Kazim 09821237002 Asif 09833666151 Nooresh 09819225396 ( after market hours only ).

Will soon try to put pictures of the opening of our new office.



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Article by Nooresh Merani

Nooresh has written 2532 articles.

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{ 1 comment… add one }
  • Raj July 13, 2010, 11:30

    Happy to see you again with job of analysis & best of luck for your new ventures.


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