Sensex manages to pullback after 3-4 sessions of slow downmoves. Although the immediate supports were around 8500-8300 levels the index has pulled back from 8630 itself. Such a move is taking place because of low volume support to the breakdown. Till we dont see higher volumes in downtrend the volatility would remain with such floppy moves. Only a move beyond 9400 would mean a reversal in short term.
Trading pullbacks and flip-flop moves would be difficult till we dont see a larger price action and volume supporting current trend.
Stocks to watchout for :
Colgate seems to be a breakout buy on dips with a stop of 395-400 for short term. Difficult stock to trade though.
Many stocks have pulled back but we need to see for a couple of sessions before taking trades. So no new calls as of now. We did some bounces in banking stocks as expected and some more is possible. Trades if any could be initiated in the day so cant be updated here.
CRUDE AND GOLD UPDATES :
Some weeks back had discussed about the big difference in current month ( 32-33) and next mth contracts ( 40-42) .Also as expected we did see a bounce close to 49 + levels. As of now the range seems to be 35-50 and only a move beyond 50 would imply a quick move. Other moves could be diff in contracts.
Although gold has knocked highs in rupee terms at 14k + the dollar equivalent at 910 is still shy of the high of the 1000-1020 mark.
In the short term 920-930 would be a major resistance and rise to it would be shorting opportunity with a stop of 939 for a dip back to sub 900. Only a move beyond 930 would surprise the streets with a straight long shoot.
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