15800 !acts as a hurdle …

Sensex Technical View :
Sensex made a top at 15789 very close to the 1st resistance level of 15800. As the current upmove is a pullback and is bound to see selling pressure at higher levels and 15800 was the upper side of the channel . Short term support is now placed at 15200 . Long term support as mentioned is near 14100 zone and worst case is 13500 a whole analysis and chart has been posted on the same some days back .
Traders can continue to be cautious as suggested and be stock specific with strict stops and let trading picks be that only and not investments.
Investors who bought at lower levels should book partially at 15800 -16400 or if u get 15-25% pullbacks in stocks picked. Investors should wait for dips to 14100-14700 if it comes to add more or continue to wait with stocks picked.

Stocks to watchout for :
Difficult time to trade for short term and lot of stocks require actions to be changed in the day so would wait out for some time to give short term picks on the blog coz further updates not possible during the day ..Divis Rcap moved first to crack later as we had picked it yest exitted at small gains .

Cement stocks have started showing positive divergences on the charts and better volumes indicate a possibility of a bounce so traders can keep grasim , india cements , Acc on the ticker to trade spikes.

HCL Tech , Satyam , Infosys and IT large caps are showing signs of tiring down and investors would better wait and not enter the stocks .

Thoughts :
Just happened to remember a recent example ... which could help traders to maintain discipline .

A newlisting Aishwarya Tele with an ipo price of 35 -40 bucks listed at a heavy premium found a trader at the broking place day trading in it 1k-2k shares for 2-3 rs pop ups and makin money for a couple of days . The stock zoomed to 135 an unusual price and only reason this and other traders were buying was for a pop of 2-5 bucks ... In the end he got stuck once at 120 odd and is still averaging ( god knows even if he knows the IPO price or not ) ........... Stock is now at 50 bucks !!( he is losing 10 times more then he made initially ) ..Happened to check later the stock had only 2-5 % del vol !!!! . So thats why i maintain trading and investing is a serious business and one should better do some basic research before getting into anything .

In simple words speculating and penny investing can give obscene returns but can u leave you naked too if u r not carefull 🙂 ....

Best Regards,

Nooresh 09819225396

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