Technical view by Nooresh

Quick Technical View on Large Caps –

Sensex Technical View:


The crack has been much deeper and faster then expected though a possibility of 10% correction and re-test of channel was considered many a times but not in such quick time.

This suggests index may now get into a tight range of 18800-19800 for some time.


As i have been maintaining the longer term bullish stance and a worst case dip to 18500-18800. Many people might start getting fearful with the correction and start re-collecting 2008 !. But in simpler terms its a CORRECTION not a Crash and what we may see is a similar impulsive upmove over the next few months.


In the last few corrections Sensex has dropped around 2000-2400 points from the top or a max of 12% for an average 20-25 sessions.

We are down 2150 points or 10.1 % down with 15 sessions done. If we have to stick with the time cycle being followed then we might be through with the bottom by mid of dec and a strong recovery could follow. But time cycles are not a strict technical study so one needs to wait and watch for further confirmations.


I stick to my view of deploying cash at 18500-19000  or even fresh money with a medium to long term view. A few months later the current difficult phase would seem like yet another missed opportunity. Although quite a lot of stocks which we picked some weeks back are down 15-20% investors can look to average the same. ( I did not expect the correction to be severe on the broader market so did not advise much of an exit this time around like we did at 17.5k-18k tops before)


The medium to long term view changes only if 17800 breaks.

We would soon be launching a Derivative Advisory Service for high risk traders which calls would be generated by me but with exact futures levels. Meant for Disciplined traders only.

Also structured investment products for investors. For more call Asif 09833666151




Article by Nooresh Merani

Nooresh has written 2531 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 8 comments… add one }
  • Imtiyaz November 30, 2010, 10:15

    Hi Nooresh,
    Good article.

    Any views on SBI and other banking stocks. And what about the large cap IT stocks?

  • Manish November 30, 2010, 11:03

    whats your take on Power Grid now.
    please give “short,Medium & long term views”.

  • Rajesh November 30, 2010, 18:24

    Hi Nooresh,

    Please advise on the impact of Dollar index above 81 and euro below 1.30. What could be the significance on FII activity?
    Is a major sell off on the cards?


    • nooresh December 1, 2010, 19:09

      Hi Rajesh,

      The dollar index may not be the best indicator to gauge FII flows according to me

  • jayanthimurali November 30, 2010, 20:29

    Your current advice abt Ion exchange. please let me know if i can enter at this rate or wait for further dip. If yes, what is the target and SL.


    • nooresh December 1, 2010, 19:09

      Hi Jayanthi,

      The stock remains a long term story can do 250 over the next 1 yr

  • Janak Naik December 2, 2010, 10:11

    Thanks for sharing your views on the Big Caps.
    Is it a good time to start buying Tata Steel or one should wait for it to test 580.


    • nooresh December 4, 2010, 22:58

      Hi Janak,

      Tata Steel looks a good trade on dips to 590-600 or above 640 for sharp upsides.


Leave a Comment