Technical Analysis of Indian Equities by Nooresh

Gaps , NAV prop up – Sensex stages a breakout !-= Quick Technical Views – Axis Bank, Tata Motors, Grasim, Bank of Baroda

19000REsistance

Sensex Technical View:

 

- > In last week it was suggested if markets hold above the trendline and 17300 the possibility of an upward retracement to 19000-19400 band remains open.

- > Index gave a breakout with a gap and followed it up strongly towards 18800 +.

- > As per the triangle pattern the possible targets would be in the range of 19000-19400.

- > Also on the fibonacci front the retracements are placed at 19000-19400.

- > Currently index has made two gap up openings and we rarely see more then 3 gap ups in one go in the Sensex. So one may expect a little cool of after the first two sessions of the week.

- > One may look to book out in rise to 19400 levels.

- > The current upmove has not seen midcaps/smallcaps rise and with the possible NAV prop up in end of March next 3-4 sessions will see broader market action it seems.

- > Technically it doesnt seem the rally may have the strength to cross 19400.

 

Random Observations:
-> Crude up, global issues remain, Libya, Japan nothing has cooled but Index has moved up. This clearly shows one cannot just trade a direct co-relation with news :).

- > MARCH end is seeing a lot of NAV prop up as markets did correct heavily. The trend needs to be followed in April to confirm its just not NAV move.

- > Will April bring in fresh money with fresh books and upgrades after the result season.

- > IT remains a sector not to short with a classical trap in Infosys.

 

Stocks to watchout for :

LIC Housing has given a breakout and should head to 220 levels in short term. One can enter at 199-203.

Some Quick Technical Picks


axis

 

BOB

 

tatamotoooo

 

grasim

 

Delta Corp can see 10 % MOMENTUM move in the week as its given a small technical breakout.

Article by Nooresh Merani

Nooresh has written 2555 articles.

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{ 4 comments… add one }
  • SWAROOP KALE March 28, 2011, 08:57

    HI NOORESH,

    IF THE SENSEX WAS TO FILL THE GAPS ALREADY MADE, WHAT WOULD BE THE DOWNSIDE LEVEL ON THE SENSEX & NIFTY?? CAN U PLEASE CLARIFY.

    Reply
  • Hari March 28, 2011, 21:33

    What is the expected rate of returns in 2011-12 in stock market ?

    Reply
  • U March 29, 2011, 00:07

    Thanks Nuresh i made money on LIC .

    Reply
    • nooresh March 29, 2011, 23:26

      Welcome Utsav,

      We advised a trade at 201-203 to clients for a target of 220-225 one of the good trades in last week 🙂

      Reply

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