13500 ! broken … if stays below for 2-3 sessions then 12500 odd

Nifty Chart and View:
For a change have put up the Nifty chart . The trendline which we are looking at Sensex around 12500 and 13500 similar trendline for Nifty comes around 3900-3950 ! .... The 2006 correction reversed from the same line. So a couple of days below these levels would mean 3800 levels in near term

Sensex Technical View :

As we have seen in our previous chart 13500 is a crucial support on basis of the downward channel and long term trendline . Similar trendline on Nifty is placed around 3900-3940 range. Keeping in mind the two crucial supports on both indices are almost near and investors should keep a close watch on it. If indices close below the levels for 2-3 sessions we can also see a swift correction to 12500 odd levels.

Investors those who have deployed 35-60 % or lesser and had exitted major chunk of the portfolio at 17500/16800/16100 as suggested should now wait and watch for next few sessions . As being maintained its a time wise corrective phase although much of the price wise correction is done but investors will continue to get investment opportunities over next few weeks and recovery would not be quick so go slow no need to hurry.

Stocks to watchout for :

Suzlon has give a weak close at 215 and should go till 190 on the lower side.

Jindal Steel and Power is about to give a breakdown belo 1700 could tgt 1300-1400 zone in short term .

Realty and construction stocks continue to remain under selling pressure and would still continue to avoid alongwith capital goods sector and its better to wait and let the stocks settle down and make a base before one can look into them as the run up has been too much so no supports can be seen technically .
Pharma is the only sector which has stood out in the current crack and Glaxo , Dr Reddy , Cipla look stable but can wait for a breakout.



Best Regards,



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