Sensex Technical View :
In one of the previous charts it was discussed that after booking at 15500 + one should now be watching 14950 and 15800 as a trigger. A rising wedge formation as shown if broken has always resulted into dips /cracks on the index.
Technically supports as before are placed at 13700/14050 /14400 ( broken) . Till markets dont give a close below 13700 it could remain in a tight range with an upside cap around 15500-15800 for some time as we have discussed before that the current corrective upmove should last 50 odd sessions which is almost 10 weeks from 12500.
TIME ANALYSIS CHART -- says 50 sessions of corrective upmove
PRICE ANALYSIS CHART -- 15450 was the target accordingly.
Market Observations and Thoughts - (Few lines would be there in this section now onwards which is not a recommendation but a view , take your own call).
Lot of selling was seen in the banking, financial stocks in last two days possibly on expectation of a bad inflation no which came around 12.63 inline with expectations but yet again a new high. Market men expect the no to go up till 13-13.5 before peaking out. Small PSU Banks have limited downside accumulate on dips - all bank,dena,andhra etc.In the financials IDFC below 88 could drop to 78 -80 which would be a good price to buy if it comes !
Crude as expected has given a sharp bounce from 112 levels and go up till 122-124 only a move above 128 would be a problem . Gold 780-840 is a range for some time it seems.
Stocks to watchout for :
Rolta investors can look to buy if it comes to 300-310 or above 345 with a medium term view stop of 290 if u buy on lower side.
SBI one of the favourites which was advised in the correction and has bounced 40-50 % from the lows and then profit booking advised can now be re entered partially at 1250-1300 if it comes.
Tata Steel has a crucial support at 560-580 which is very important for medium term. A close below 550 could take it to 450 ! . So strategy could be to buy with a 10-30 rs stop for a bounce.
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