Sensex Technical View :
In the last many posts it was mentioned about a pullback rally on Sensex which should try hittin 9900 or higher and touch the channel as shown in the chart. Check earlier chart .
Also it was shown the possible flag/channel breakout would give us an upmove in short term. Check earlier chart.
In the last few days it was clearly mentioned to be long on specific stocks and keep trailing or partial booking which has given good returns.
Now currently if we see the last few sessions of move have been following a short term channel for which the rough level comes to around 9600 . Sustaining above this could keep the momentum of upswing and if stays below could expect testing of 9000-9200 or the lower trendline which is an important level. Also markets have tested the channel yet again and need to see whether it tries to close above or not in next few sessions.
Time wise as was mentioned after a drop of 50 odd sessions we have seen a counter rally which lasts for around 30-40 sessions. or can say 11-12 weeks and 4-8 weeks. It was shown that we could have a stable nov mth n more. Check time analysis chart
Tomorrow would be the 34th session and we are nearing the ending days if this is a counter rally and near a turning point unless there is a sustained close above 10500 which opens up possibility of an extended bear rally targetting 50/61 % reracement arnd 11.6k/12.5k. So next 2-3 weeks would decide which possibility Sensex is shaping towards.
SO strategy would be to watch the 9000-9200 and 9600 levels over the next few sessions and trade for short term with strict stops on either side for intra or 1-2 sessions.
For more detailed analysis check the previous posts to get a more clear idea of the movements till now.
Stocks to watchout for :
HUL moved a bit above 246 , ITC fizzled after 178 hittin stop. Hindalco dint do much . Praj , Essar Oil ,RNRL , RPL , RIL did tgts and more . That was about the last few discussions. Other bounce back stocks some gave super bounces.
Some days back had put up a few charts for short term moves . namely Tata power , ACC , Power grid , Bharti , Reliance , NTPC of which only power grid flopped and others did give a smart short term move ..... CHECK POST ....
Will put follow up charts to show the use of technicals for short term by above examples soon.
For current stock specific picks would wait and watch how stocks move around 9450-9600 mark. Lot many stocks have reached their 50 day moving avgs and in some cases 200 days so the strategy would be to wait and watch.
No fresh picks as of tonight. If there are some trades possible and if i get time to pass on would be sent on the sms channel. ( Please use your own trading strategies as not all calls may be followed so keep strict stops and manage ur risk )
For some sms updates
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Best Regards,
Nooresh
09819225396
noorrock2002@gmail.com meraninooresh@yahoo.com
