Sensex Technical View :
Sensex continues the slow decline and makes a low of 12514. The near term supports are placed at 12300 ( previous low ) and 11800 ( 50% retracement of 3k to 21k ) . As Sensex is nearing support levels one can look for reversal signs in particular stocks for a pullback. Higher side the gap at 13060 and 13500 are levels for resistance. Investors should now start being extremely stock specific as many stocks may continue to go down even though mkts pullback. As we have seen in last few weeks the stock u pick are important.
With a dip in crude and a jump in Dow we could see a pullback on back of global cues .
Crude View :
As was stated yesterday that its about time crude starts to correct . Technically a rising wedge pattern is highly bearish if broken on the downside. 134 is a crucial to watch for some weeks. Below 130 we could see equity markets globally react positively . I dont track crude closely though. Check chart in post below.
Dow Jones :
Few weeks back had stated that below 11400-11500 dow jones could go till 10800 which is an important fibonacci retracement. Dow Jones has made a low close to 10800 before giving a small pullback which will face resistance at 11250 and 11400.
Stocks to watchout for :
Certain large cap stocks which have not broken recent lows with mkts and their resistances .
Bharti Tele ..... 688-690 support resistance 760
BHEL ......... 1340 and 1550 .
JSW Steel ....690-700 resistance at 790-850 .
ONGC .... 840 and 920
Tata Chemicals , Tata Steel , RPL arnd 145 look good for long term investment on dips from current levels.
Best Regards,
Nooresh
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