Technical Analysis of Indian Equities by Nooresh

Sensex reverses from the lows … No impact of Elections range of 18200-19000 broadly.

SensexBlog130511

 

Sensex Technical View:

Last week had been suggesting about the importance of the 18200 support levels. http://www.nooreshtech.co.in/2011/05/sensex-ideally-should-find-support-at-18200-on-closing-basis-else-it-may-head-to-17500-17800.html

 

In todays trade yet again Sensex has bounced back from the lows closer to 18200.

 

Technical Observations:

- > The gap at 18200 is filled and market is still closing above the 18200 levels.

- > 18200 is closer to 61.8% correction level of the move from 17300 to 19800.

- > The short term trendline continues to provide support to the markets.

 

Conclusions:

 

- > Till market holds above 18200 the bounce back to 19000 levels remains open.

- > If market breaks below 18200 may drop to 17500-17800.

- > If bought on dips to 18200 keep a stoploss of 18200 closing basis to book at 18800-19000 levels in bounce.

- > Momentum traders can buy above 18630 for a quick move to 18800-19000

 

For now its time to be stock specific.

Article by Nooresh Merani

Nooresh has written 2569 articles.

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