Will RBI give Direction to Sensex.



Sensex OverView:

Just a month back we were at 17300 with lots and lots of pessimism with majority of the market participants looking towards 4800/16000 levels.


Suddenly a month later we are at 18870 which is a decent 8-10% from the bottoms with many stocks hitting new highs as well as bouncing back 20-30% or even more. This is how dynamic the market is. Now what is surprising is slowly the 4800/16000 camp is reducing 🙂


This is what i had posted at 11 am in the day on June 20 when lots of Mauritius rumours were being heard and lot more.

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The next day it was mentioned about some of the top picks in the index

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Some of them like ITC,HUL,HDFC Bank, Bharti Airtel moved up 8-15% and ended up making lifetime highs ! thats some serious outpeformance.

In the next few days many stocks like Godrej Inds, Lnt, Bajaj Auto, Colgate, Yes Bank , Atul Limited , VST Inds, Pidilite,APL Apollo and so on which did give good returns. Some like Biocon,Cadilla showed some surprise but ended lower.


Right now i would expect the market consensus to slowly turn positive which will fuel a better move on the broader market. But its going to be a selective period with certain stocks outperforming in a big manner.


Sensex Technical View:

In the near term for the Sensex the trendline continues to come around 19000-19100 and 5650-5750 for Nifty.

Till we dont start sustaining above those levels the momentum could remain on the side counters only. Any sustained move above 5650 for 2-3 sessions can take the index to 5760-5790 i.e 19200/19800 on the Sensex.

Also once it starts trading above 19130 it will be a signal of a higher top and a trendline breakout. But i expect the rise to 19800 when it comes will be slow.


My point of view would be clear from this post - https://nooreshtech.co.in/2011/07/markets-worried-global-concerns-rising-borrowing-rates-high-inflation-next-few-months-an-excellent-time-to-create-a-portfolio.html 


I continue to remain in the bullish camp 🙂 who thinks 5200-5100 is the base for the market.


Meanwhile La Opala Glass and Piramal Glass have started their upward journey from recommended levels both being up 10-15% . Continue to hold the same for targets of 115-120 and 140 in medium term for La Opala and Piramal Glass for 165/180 in short term.


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