Sensex Technical View :
Head and Shoulders pattern achieves target and gives a good bounce yet again from the 13100 zone. Sensex made a low of 13050 in opening bell but covered up all losses by end of the day. Now there is a gap left at 13660-13930 which should ideally get filled. Resistance on upsides are placed at 14100/14400 above the gap zone. As suggested about support around 13100 some traders would have taken index and stock specific longs which one should start booking partially arnd 13900 and above to conserve and lock gains.
Market Observations :
Crude at 90 . !!! Waah now every analyst/street chap etc will be boasting of talking about a fall. Well every trader in the world knew that crude could not stay around 150 for a long time !! ... But it was clearly mentioned that its a long term topping out formation and a big fall to come with updates on every level . Wont be surprised if we hear reports of 75 !! ... Technically 85 is the next important zone ...
Stocks to watchout for :
Reliance makes a low near 1800 , RPL a low of 140 exactly at the levels suggested and bouncec back sharply . Investors those who have bought around 1800-1850 and 140 can take some profits out around 1980-2040 and 153-155 which would be 8-10 % bounce and then hold rest as investment and make provision to add more on dips.
IFCI looks good for investment at 40 levels with a long term view . Investors can continue to add on dips.
As advised investors would have taken positions of around 30-50 % should now look for booking partial profits at 15-25 % gains to lock and conserve gains and be able to add more on dips.
For stock specific specific recommendations and analysis --- https://analyseindia.blogspot.com for details.
Best Regards,
Nooresh
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