Sensex needs to see a follow up move above 19600

SensexFollowup

Sensex Technical View:

Yesterday we saw a nice Doji candle on the index closer to the 200 dema. Today we have seen a positive close but a similar pattern was seen a few days back to but no follow up.

We may need to wait for a move above 19600 to see some positive momentum back into the market.

Although its earlier to presume but it seems index may get into a consolidation between 18500-20500 for quite some time.

The longer term pattern gets violated below 18500/17800.

 

Investors/Traders should watchout for stock specific opportunities as any bounce back or breakdown from here will lead to larger stock moves.

 

Stocks to watchout for:

MIDCAP IT sectors look interesting.

 

KPIT cummins has given a breakout today should head to 170 in short term.

Mphasis seems an interesting bet above 700.

 

Banking Stocks should be the first to bounce back as they are highly oversold. ICICI till above 980, Yes Bank stoploss 247, SBI stoploss 2450 could be the best.

 

CAIRN technically could give 10-15 rs move up above 348

 

Shree AshtaVinayak seems the worst is over for the stock and may jump to 8 bucks then dip and finally get back to 10-15 bucks over the next year:) Yet again its only for speculators.

 

AGRE Developers is being discussed among some investors as to be an interesting stock if comes below 45-30 range. Do your own research.

1 Comment

  1. Mihir
    January 19, 2011

    Hi Nooresh,

    You have talked abou tata steel few days back…now that it has corrected and fpo is priced at 590-610…do u recommend to subscribe it for 3-4 months time frame. …?? or will it still correct more?

    also in IT space…i know you mentioned about mphasis and kpit….but what about HCL Tech ..for 3-4 motnhs view?? what is your view on entire IT sector as such? they have run up a lot…and looks like people are still waiting to join….

    thanks for all your help!

    Reply

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