Technical view by Nooresh

Sensex – Continues to Drift lower but Broader Indices resilient



Sensex Technical View -

The markets after staging a good come back from 17800 levels are back to testing it.

The supports for near term are placed at 17800-18000 levels and on the downside to 17300 levels.

Although this may look like a head and shoulders with deeper targets but a string of supports at 17300 will reduce the downsides if it breaks 17800.


Another intriguing observation is the resilience in the midcaps/smallcaps and broader segment which have not declined in the current dip.

Quite a lot of indices have not come to recent lows. One of the reasons could be the drop in Reliance Inds and some more large caps.




Reliance Inds --


One of the stocks which consistently has tested breakdown and breakout levels but has ended up going no where earlier the range was 900-1100 which has now got shifted to 880-1070.


Now it seems the range may now shift to 850-1020. So one may look for a bounce back trade by buying around 850-880 in small parts with a stoploss of 840. Bounce back could come till 920/950 levels also.


The rangebound move of Reliance would continue to impact Index moves.


Certain other stocks which are negatively placed on the index – IT stocks have seen their first hint of selling. Only pocket of strength seems to be TCS till it holds 1130-1150.









Some positively placed








One trade which has worked out smartly for now which was also tracked by one of our blog readers -


ENIL – Entertainment Network India Limited








Article by Nooresh Merani

Nooresh has written 2531 articles.

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{ 3 comments… add one }
  • sneha June 17, 2011, 08:48

    Hi Nooresh,

    I have been investing in a staggered manner in RIL since a year. Buying 10 stocks every time it falls by Rs10. I have it at an average price of Rs940 now. But getting worried now. I am still buying into the dip but want your advice. I am a long term player.

    • sneha June 23, 2011, 08:44

      Nooresh please reply. I am waiting on u, should we accumulate RIL?

  • imtiyaz June 17, 2011, 13:18

    Hi Nooresh,

    I am long i nRIL. I bought RIL future at 917 and still holding. Did hedge my future with buying put. What you suggest now, is there a chance for RIL to touch 950 in this month?


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