Sensex technical View:
Sensex has reached the panic bottoms and after a big fall the recovery cannot be a smooth one and hiccups will continue as higher zones will see pressure. As mentioned before the view remains 16500 on weekly and monthly basis is important. Volatility will be high in the zone of 16500 -18000 and investors should use only dips to buy and also be disciplined yet again to book partially . Long term scenario remains bullish but it doesnot imply markets would not correct and cool down the unwarranted optimism of traders.
So we have had advised investment buying to be done yesterday and same to be booked today at 17950-18200 zone to re enter slowly on dips. And we still dont advise to go on margin or leveraged buying and do keep decent amount of cash to give u flexibility.
Stocks to watchout for which have corrected heavily and are good value picks with 3-6 mths view :
Investors can buy the given stocks in small lots ...for xample it means say u wanna buy 1000 shares buy 300 -400 to start with then add 150-100-100 slowly on declines and not necessary u get all the desired quantity .Be patient and also disciplined to book partially at 15-25% gain frm buy .
Escorts in the range of 90-80 slowly .
Hindustan Petroleum from 250 -235
IDBI 110-100
Nagarjuna Fert from 38-33 ..... ( lil risky as volatility high )
Hind Oil exploration ( 90- 80 )
Parsvanath Developers ( 275-250 )
All the abov stocks have corrected overly and can see value buying bounces in coming months. Dont bee in a hurry and yet again no leverag or margin positions advised.
Best Regards,
Nooresh
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