Technical Analysis of Indian Equities by Nooresh

RSI for Sensex – Equal to 2008 panic levels.

RSISensex

 

The RSI is now closer to 22-23 last seen in September 2008.

After a level of 22.8 RSI in September 2008 index bounced back 10% from the lows but subsequently fell another 20-25% to 7700 levels but gave a positive divergence signal.

 

So one now needs to watch if a new low below current lows of 15980 gives Positive Divergences, which will signal a sharp turnaround in the short to medium term.

 

Gold after getting into a speculative move above 1700 has started correcting is now back to 1760 from a high of 1900+. Giving indications of a possible short to medium term tops in place. As mentioned before above 1700 the gold move is going to be more speculative and investors should avoid as an asset.

Although at 1550-1650 would review.

 

 

Happy Investing ,

 

Nooresh Merani

 

nooreshtech@analyseindia.com

Article by Nooresh Merani

Nooresh has written 2613 articles.

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{ 10 comments… add one }
  • Aditya August 25, 2011, 16:17

    Hi

    I have been following you since quite a while …

    i have seen two things today on the bse chart

    positive RSI.. seeming close to the bottom and the stochastics.. which again show the signs of turnaround.. 200 ewma is at 4830 nifty..based on which i think we might see a bounce.

    do share your views if you feel interested

    aditya

    Reply
    • nooresh August 27, 2011, 15:46

      Hi ,

      There were signals of some turnaround but no follow up price action and 200 wema can be broken also for a while or longer.

      Right now seen a positive diverence on friday a follow up action will confirm some pullback

      Reply
  • Vinitha August 27, 2011, 16:05

    Sir,
    I had invested all my savings in Equities. Now i am on a huge loss.
    Can i buy now? If yes pls let me know ur Multi Bagger Picks for next few years

    Reply
    • nooresh August 29, 2011, 08:30

      Hi Vinitha,

      If you are already invested major portion of your savings in equities i would suggest wait out as equity investment returns on asset allocation.

      As of now next few months can be painful and test patience. Couple of long term stocks you can add is Godrej Inds, Atul Ltd, Aditya Birla Nuvo where downsides are limited in the long run and will give steady returns.

      Reply
      • Vinitha August 30, 2011, 16:54

        sir ,
        GODREJ INDS CURRENT P/E IS 45,
        Aditya Birla P/E 25
        SO IS IT GOOD BET ? PEOPLE SAYS P/E ABOVE 20 IS EXPENSIVE

        Reply
  • siva August 27, 2011, 16:07

    Sir, u had advised to buy JPASSOSIATES at 55 now it is at 54.4 what is ur current view on it? buy , sell or hold what can be the stop loss

    Reply
    • nooresh August 29, 2011, 08:28

      Hi Siva,

      Jaiprakash Associates is a contra call to buy on dips with a medium to long term view and be ready to see some more downsides also.

      Reply
  • siva August 30, 2011, 16:46

    thank u nooresh ji, i bought it at 56 now it is 61.34
    u are very help full to small investors like me

    Reply
    • nooresh September 1, 2011, 13:18

      Hi Siva,

      As i have mentioned Jaiprakash Associates is a contra call with a medium term view and may test patience. If you are for a short term trader may book at 64-66.

      Reply

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