Technical Analysis of Indian Equities by Nooresh

Forced Correction …" Best time to repair the roof is when the sun is shining !! "

Yet again the markets will see a corrrection as a knee jerk reaction to the announcements and proposals of the SEBI ... As i have always said in so many weeks the only way we will see a correction is going to be forced by some announcements and there is no way one can exit out of the situation as in such a case the markets will open with a gap down only and in last so many such things like crr hike etc etc the markets will not give u a chance to exit ...
So its going to be a problem for leveraged players... So all one can say is reduce leverage and remember to be a disciplined investor and trader bcoz that is what can save u in such situations....

A simple view on the announcement which may not be correct as i am not the right person to talk on economics or fundamentals :

SEBI comes out with a good move or plan to do some cleaning stuff for the long term stability and the thing is just a proposal so what they have done is can be said in some nice words i heard " Best time to repair the roof is when the sun is shining "

So being a smart regulator SEBI has showed the draft and in all organisations drafts take time and loads of changes, rollbacks by the implementation or confirmation .....So its a smart move and at the right time but not in the right manner....As the draft is not very clear so easily can be rolled back and with the window of 18 mths given to p-notes so there is much more clarity to come in days to come and can lead to pullbacks watchout !!

As per my believe P-notes are like Travellers Cheques which can be issued by certain organisations ( Fiis ) which can be given to any person and can be used to hide the original person who will actually use it ... So the regulatory body ( SEBI ) is trying to make it transparent about who are going to use the notes....

Disclaimer : This view could not be factual correct so please do ur own research ...

Technical View on Sensex :

As i have given in my earlier views the minimum projection goes to 19200-19300 so a dip was always in the offing as we did very close to the upper zone.. Technically the dips could be to 17900 and 17100 .... And i still maintain the yearly view which states we cannot close below 17 k for the year !!! The worst possible sceanrio could be 16500 and i believe that would be a mouth watering place for investors so is very difficult.....One thing seen in indian markets is the corrections will continue to be deep and sharp the same time the reactions and recovery is much much faster whenever panics have come so be quick in knee jerk reactions !!!

There is nothing to worry for long term investors and panics are never a time to sell coz they would be illogical lows... Those who are patient look to pick good fundamental stocks at panic prices if they come .... So the strategy is simple dont be leveraged and look to invest on panics near to 17900 with half ur money and wait for 17100 or wait for the dust to settle at 18k levels and then put ur money back !!

Just have a look back to some stocks which u missed out on and make a list and be ready to accumulate in small lots as panics dont have the best bottom but with time good stocks will not take much time to recover back to new highss.....

Best of luck to leverage players and BON apetite to the investors the supper is getting ready for them...

Best Regards ,



Article by Nooresh Merani

Nooresh has written 2807 articles.

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