Technical Analysis of Indian Equities by Nooresh

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Sensex – No Follow Up Moves on Either Side !!

Candles

Sensex Technical View :
In the last 3 weeks everytime there was a ray of hope through some respite and a positive candlestick pattern the markets have cracked further.

We see a doji, harami followed by just one positive day and the next day bang the markets fall. So its a very indecisive market it seems for traders.

On friday Sensex saw a very bearish candle and Monday its a bullish harami which clearly indicates market is not ready to go anywhere but after 3-4 instances its high time market will find a short term direction. Traders should be on high alert for market signals.

On a simpler basis 17800-17700 and 18500-18600 are two zones to watch for.

 

DLfretest

DLF :

Previously had mentioned that DLF could enter a new down phase if it drops below 245. Stock did fall below 245 and cracked to 215 but has sharply recovered.

Whether this is a retest or a false breakdown would be clear in next few days. A move above 260 would indicate it was a false move.

 

Allbank

 

Allahabad Bank :

The stock has been testing 195-197 levels for quite some time. Will it be lucky again or crack to 185 quickly on drop below 195. Quick traders can keep a watch.

 

Even UCO bank below 102 could give a quick 5% trade.

 

Pipavav Shipyard is one stock which has been holding strong in the current correction. Above 85 the stock can also give a spike to 100 it seems. But one may be careful πŸ™‚

 

Regards,

 

Nooresh

Article by Nooresh Merani

Nooresh has written 2613 articles.

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{ 8 comments… add one }
  • Sumit Jain February 8, 2011, 10:52

    Dear Nooresh,

    That’s true it is indecisive markets for traders but for investors there are many stock which are truly valued as per fundamental and even with the technical too.

    I think time to Grab such stock.

    Sumit Jain
    Blog.Sufin.Com

    Reply
  • bhanu68 February 8, 2011, 11:12

    Is this time to average the following,

    Lokesh Machine,
    Mic electronics
    Bengal Assam
    Andre yule
    hinduja venture
    hitech plast
    Balarpur industries
    Apollo hospital
    Om Metal
    Camlin
    all are 30% odd down from by recomendation Except Camlin

    appreciate you view and directions.

    thanks
    bhanu

    Reply
    • nooresh February 8, 2011, 14:26

      Hi Bhanu,

      At this point of time my evaluation for last 2-3 weeks has been to increase cash to 50% or more.

      One may look to buy midcaps once we see a turnaround in large caps which can be either at 17800 or 16800/16100. Else we need to see a closing above 18600.

      Till then i would just watch.

      Fundamentally the midcaps do look good but they move only in good times. For example Mirc is available at 5% DIV yield.

      Reply
  • jonty February 8, 2011, 18:41

    Dear Nooresh ;

    you are looking at market with biased view ., The view is not of a trader but investor . Trade looks at both the sides of the market. Trader is trader , he is not a bull or bear. market is weak when it touched 6338 .
    from 6338 C has started of Elliot wave. First leg completed at 5690 with zigzag correction given till 6181. which is 74.6 percent of entire fall . and now third leg started which should take market till @ 6111. which is 1.618 times the first down leg.
    Sorry if I have challenged your view.

    Reply
    • nooresh February 10, 2011, 12:35

      Well Jonty my view has been clear that below 19000/19900 investors should have 50 % or more cash and traders on total long exit. Since then technically we are just watching the markets and as i have said next technicals are 16100/16800 on lower side. Intermediate bounces can be seen.

      So let us see how it goes. There is no challenge on the view.

      Regards,

      Nooresh

      Reply
  • bhanu February 8, 2011, 20:47

    Thanks Nooresh,

    but should it not be averaged as the prices are down or do you expect them to go down further? for longer term say 12-18 months can they be averaged.
    just need more clarity in decision making.

    bhanu

    Reply
  • bhanu February 10, 2011, 13:35

    Nooresh,
    what is the buy level for Camlin, Apollo Hospital.

    thanks
    bhanu

    Reply
    • nooresh February 11, 2011, 10:05

      Hi Bhanu,

      If you have created good cash then u may look to wait on both of them to buy on declines of further 10%

      Reply

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