Technical Analysis of Indian Equities by Nooresh

Quick Technical View on Large Caps –

Sensex Technical View:


The crack has been much deeper and faster then expected though a possibility of 10% correction and re-test of channel was considered many a times but not in such quick time.

This suggests index may now get into a tight range of 18800-19800 for some time.


As i have been maintaining the longer term bullish stance and a worst case dip to 18500-18800. Many people might start getting fearful with the correction and start re-collecting 2008 !. But in simpler terms its a CORRECTION not a Crash and what we may see is a similar impulsive upmove over the next few months.


In the last few corrections Sensex has dropped around 2000-2400 points from the top or a max of 12% for an average 20-25 sessions.

We are down 2150 points or 10.1 % down with 15 sessions done. If we have to stick with the time cycle being followed then we might be through with the bottom by mid of dec and a strong recovery could follow. But time cycles are not a strict technical study so one needs to wait and watch for further confirmations.


I stick to my view of deploying cash at 18500-19000  or even fresh money with a medium to long term view. A few months later the current difficult phase would seem like yet another missed opportunity. Although quite a lot of stocks which we picked some weeks back are down 15-20% investors can look to average the same. ( I did not expect the correction to be severe on the broader market so did not advise much of an exit this time around like we did at 17.5k-18k tops before)


The medium to long term view changes only if 17800 breaks.

We would soon be launching a Derivative Advisory Service for high risk traders which calls would be generated by me but with exact futures levels. Meant for Disciplined traders only.

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Article by Nooresh Merani

Nooresh has written 2808 articles.

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{ 8 comments… add one }
  • Imtiyaz November 30, 2010, 10:15

    Hi Nooresh,
    Good article.

    Any views on SBI and other banking stocks. And what about the large cap IT stocks?

  • Manish November 30, 2010, 11:03

    whats your take on Power Grid now.
    please give “short,Medium & long term views”.

  • Rajesh November 30, 2010, 18:24

    Hi Nooresh,

    Please advise on the impact of Dollar index above 81 and euro below 1.30. What could be the significance on FII activity?
    Is a major sell off on the cards?


    • nooresh December 1, 2010, 19:09

      Hi Rajesh,

      The dollar index may not be the best indicator to gauge FII flows according to me

  • jayanthimurali November 30, 2010, 20:29

    Your current advice abt Ion exchange. please let me know if i can enter at this rate or wait for further dip. If yes, what is the target and SL.


    • nooresh December 1, 2010, 19:09

      Hi Jayanthi,

      The stock remains a long term story can do 250 over the next 1 yr

  • Janak Naik December 2, 2010, 10:11

    Thanks for sharing your views on the Big Caps.
    Is it a good time to start buying Tata Steel or one should wait for it to test 580.


    • nooresh December 4, 2010, 22:58

      Hi Janak,

      Tata Steel looks a good trade on dips to 590-600 or above 640 for sharp upsides.


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