Sensex – Time to turn Again towards 17k + with consolidation?

Sensex Technical View :

The last posting i made on Sensex was last friday. Just pulling some of the lines below.

Technically we should now pullback a bit from this band or at least take a pause for a few sessions. We would review the same in the middle of coming week.

Bottomline : Those who bought on our call at 4800 are at gains of 300+ points on Nifty should now book profits and enjoy the weekend.

Nifty did a high of 5130+ which is a cool 300 + points trade. Hope readers enjoyed !! if so do drop in your comment.

Technically the bounce back was expected to be 50/61% of the total move from 18k to 16k which roughly came to 17000-17250 band where we booked out for near term.

The next dip should again ideally be 50% or lesser of the pullback which comes to around 16400. So we could expect a strong support in the band of 16300-16500 in case of weak global scenario. One can expect a turn around from the current zones to re-test 17k. Closing above 17250 gives a change of momentum. Continue to maintain the stance of buy on dips and book on rise.

For now have advised a re-entry in Nifty futures at 5010/4950 in 2 parts would look to book the same at 5040 + and then trail.

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Stocks to watchout for :

In the last few months we have found pretty good 10% move up trades in metals 3 times. As of now i do expect they might be close to bottoming out but risk-reward is still not favorable for the 1-3 session trade.

But bottom fishers can start buying slowly in Tata Steel and Jindal Steel with strict stops and strict targets of 7-10%

Check the charts below to get a better idea.

JINDAL STEEL :

Lots of bottoms around the 600 mark. Will it hold up again. Think so and give a bounce to 650 levels. But if it breaks down below 595 it could be a quick trade on short side. So good risk-reward and a clean trade of 40-50 bucks it seems.

JindalSteel

TATA STEEL :

Lots of supports in the band of 425-450.If it comes to the band then a good risk-reward trade.

TataSteelFall

25 Comments

  1. nmmurthy
    June 9, 2010

    Your view on KSK, Hindalco and KS Oils what are the near term targets.

    Reply
    1. nooresh
      June 9, 2010

      KSK totally sideways.
      Hindalco below 130 the stock can crack.
      K S oils oversold

      Reply
  2. Akshay
    June 9, 2010

    We reduced our holding on Friday and now are well placed to add more. Thnx Nooresh

    Cheers

    Reply
  3. Dhruv
    June 9, 2010

    Hi Nooresh,

    Time permitting could it be possible for you to please post a chart analysis for Prakash Industries…I have been trying to read but could not and the stock is just sliding these days but due to the accelerated falls in the last 3-4 days it gives a sense of final bottom formation and going by your views on other metal counters this too can give a small pop….

    Any levels to further buy would be highly appreciated.

    Thank You
    Dhruv

    Reply
    1. nooresh
      June 9, 2010

      Hi Dhruv,

      Its more of a fundamental call on the stock with a very long term view.
      140-160 is a good zone where it should bottom out technically.

      Regards,
      Nooresh

      Reply
  4. Anmol Singh
    June 9, 2010

    Is Rs. 45 for DCB and Rs. 60 Clutch Auto a good entry point, with 2-3 months perspctive. Also, should an entry be made in oil marketing comanies and ONGC

    Reply
    1. nooresh
      June 9, 2010

      Hi Anmol,
      DCB seems a good entry point. Clutch is now very sideways.
      Regards,
      Nooresh

      Reply
  5. sangram
    June 9, 2010

    hi nooresh ji how does everonn looks.yesterday it was rallying on good volumes.

    Reply
    1. nooresh
      June 9, 2010

      Hi Sangram,
      Everonn lots of resistance around the 400-420 mark.

      Regards,
      Nooresh

      Reply
  6. uday
    June 9, 2010

    sir w say banknifty give me sl and tg ????????

    Reply
  7. Anjali
    June 9, 2010

    sir,
    Let me know ur view abt Fortis , Maxindia, Recoauto, let me know entry levels on these stocks with 6 month view

    regards
    Anjali

    Reply
    1. nooresh
      June 9, 2010

      Hi Anjali,
      Very bullish on Fortis for all time frames. MAX India is an extreme long term bet. Rico Auto not tracking now.
      Regards,
      Nooresh

      Reply
  8. Satbir Kangar
    June 9, 2010

    hi, nooresh i have a lot of ifci at 54.70 what is your view , can it give chance to exit around 57-60 . i will wait or exit.

    Reply
    1. nooresh
      June 9, 2010

      Hi Satbir,
      IFCI is testing patience.The stock should do 60 ideally.
      Regards,
      Nooresh

      Reply
  9. Deepak
    June 9, 2010

    Hi Nooresh, can we expect a mid-cap rally in near future? At what sensex levels, do you think, focus will shift to midcaps?

    Reply
    1. nooresh
      June 9, 2010

      Hi Deepak,
      The rally could only on crossing of 17300 levels on Sensex till then trade large caps.
      Regards,
      Nooresh

      Reply
      1. Deepak
        June 14, 2010

        Hi Noresh, thanks for the view. we are almost at 17300 now 🙂

        Reply
        1. nooresh
          June 14, 2010

          Hi Deepak,

          Yes time for me to put my update as promised in June 2nd week on targets being achieved.

          Regards,
          Nooresh

          Reply
  10. rashmi
    June 9, 2010

    hello nooresh
    u mentioned while replying to one of ur admirer
    that rally in r com doesnt seems sustaining and u wud wonder if it crosses 175-77 kinda level
    and u also mentioned that rally in rcom shud get cooled off around 175 level
    now, then when rcom has been sustaining levels like u mentioned
    do u see any changes in ur views about rcom
    thanks answering
    i wanna take positions in telecom stocks like rcom, bharti, mtnl, ttml
    kind advise

    Reply
    1. nooresh
      June 9, 2010

      Hi Rashmi,

      I doubt if RCOM can cross again. Bharti Tele has had multiple bottoms around 250s. MTNL looks interesting on further declines provided one is ready to wait.

      Regards,
      Nooresh

      Reply
  11. vivek
    June 10, 2010

    I have bought Shrilakshmi Cotsyn @Rs.200 . Give me the targets Fundamentally as well TECHNICALLY for 6-12 months.

    Reply
    1. vivek
      June 14, 2010

      Hi Nooresh,

      I have bought Shrilakshmi Cotsyn @Rs.200 . Give me the targets Fundamentally as well TECHNICALLY for 6-12 months.

      Reply
  12. Mihir
    June 10, 2010

    Nooresh bhai –
    What is your view on GTL Infra, Delta..u r pick from diwali?
    TATA Metaliks?? has it crossed the break out zone..
    Delta is lot down…hold or book loss?

    Thanks again!!

    Reply
    1. nooresh
      June 10, 2010

      Hi Mihir,
      GTL infra as of now is sideways.
      Delta Corp is a 1-2 year story and one needs to keep adding and be ready for a test of patience as its more of a funda call. Though it was an error of timing for the stock.
      Tata Metaliks did the move also after breakout.

      Regards,
      Nooresh

      Reply
  13. Madhu Murthy
    June 11, 2010

    Hi Nooresh,

    Any targets for Yes bank holding 280 Call @ 10.00

    Reply

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