Sensex – RSI positive Divergence, Reliance Inds a major trend decider.

Divergence

 

Sensex Technical View:

This may not be a great indicator to decide trades but currently it is showing positive divergence which indicates the current drop below 18160 does not have the strength so one may be careful with taking shorts.

Although holding above 18000 can give a spike up of 100-300 points on the upside.

The trend remains down for short term but there is no strength. Its better to be on sidelines then to take any action.

 

RELIANCE INDS --- The next big move for the index will be decided by this heavyweight.

RIL

 

RELIANCE INDS --- 860-880 remains a very strong
band of support.

Any further major market move could be decided
by this stock.

Whether it breaks below 860 or bounces back to
950-1000

 

Stocks to Watchout for :

 

There is no consistent trend in the market so we would prefer to avoid much of trades. Example – Orchid Chemicals was on a verge of breakout but ended up at 280 levels down 10%. Got a stoploss hit on short term trade at 308 for entry at 315.

 

So in current scenario the hit ratio for short or long trades is same as there is hardly any big move. So its a good time to sit back and study quality stocks or increase knowledge:)

 

Regards,

 

Nooresh

 

nooreshtech@analyseindia.com

8 Comments

  1. dipesh shah
    May 19, 2011

    Hey thanks for this chart if you look at reliances current chart and silvers chart for period of 1975 to 1980 the similarity is striking,,,,if you could go through this and let me know if something similar can happen… thank you regards
    dipesh

    Reply
  2. bhanu
    May 19, 2011

    hi Nooresh,

    any picks in Bank for medium term (PSU/private) i hold CBI and ICICI, can they be bought further?

    thanx

    Reply
  3. SWAROOP KALE
    May 19, 2011

    HI NOORESH. THE 300 POINTS BOUNCE ON THE SENSEX CAN BRING A 100 POINTS ON THE NIFTY TOO. CAN WE SAFELY ASSUME THAT THE EXPIRY WILL BE ABOVE THE 5520-50 MARK?

    Reply
  4. rahul
    May 20, 2011

    Where is gold heading …just tradin betn 1470 to 1510 …

    Does a DOCTOR diagnose a patient by
    looking at him — OR LOOKING AT HIS
    CHART ????????

    Reply
  5. rahul
    May 20, 2011

    Where is gold heading …just tradin betn 1470 to 1510 … Is it a buy or sell at current levels

    Does a DOCTOR diagnose a patient by
    looking at him — OR LOOKING AT HIS
    CHART ????????

    Reply
    1. nooresh
      May 20, 2011

      Rahul as i have said before buy around 1450-1470. The trend remains positive.

      Dont know about doctors 😛

      Reply
      1. Gaurav
        May 29, 2011

        Hey Nooresh,

        Any views on MIC Electronics? Is it a good buy around 18?
        I think there has been a significant drop in EPS in Q4.

        Thanks
        Gaurav

        Reply
        1. nooresh
          May 30, 2011

          Hi Gaurav,

          Dodgy management

          Reply

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.