Nifty 4450-4550 and Sensex 14800-15200 are strong support zones. Buy on declines but slowly in quality stocks.

nifty view

 

Nifty Detailed View :
Here we see that there are cluster of supports between 4450-4550 levels ( 4 reasons given ) from where Nifty should bounce back atleast till 38.2% retracement level of the entire fall from 5400 as it has done in previous major falls in this falling parallel channel that could be closer to 4800-4850 levels as a bounce back target.
1 ) Lows of 4550 in nov 2009 are critical

2 ) 50% retracement of entire rally from 2550 to 6350 is placed around 4450.
3) RSI - highly oversold, at same levels where previous important lows in Nifty were formed. We are near to 28. Generally we bottom at 24-26 levels.
4) Lower end of falling channel is placed around 4500 so this should act as a major support for the Index

 

Now similar chart for Sensex is below. 14800-15200 band should support.

 

15200Sensex

 

HAPPY INVESTING ,

 

Nooresh Merani

 

nooreshtech@analyseindia.com

16 Comments

  1. Anjali
    November 24, 2011

    Sir kindly suggest some quality stocks that we can buy.

    Reply
    1. nooresh
      November 24, 2011

      Hi anjali,

      Have been suggesting many stocks like nesco,smartlink,godrej,aditya birla nuvo as good bets.

      One may now even look at Ashok Leyland at 24 levels with a 4 % div yield. Escorts may be a moderate risk high return bet.

      Technically i would still wait to bet on momentum trades.

      Reply
  2. bhanu68
    November 25, 2011

    hi nooresh,

    do you still prefer Ambuja Cem. at this price as defencive bet?

    thanks
    Bhanu

    Reply
    1. nooresh
      November 26, 2011

      Yes at current levels looks good stoploss 135

      Reply
  3. kalpana jagadesh
    November 25, 2011

    Thanks for ur posts really fantastic
    i am learning from ur posts
    All the best
    Thank u

    Reply
    1. nooresh
      November 26, 2011

      Thanks for ur kind words

      Reply
  4. sanjay
    November 26, 2011

    Hi Nooresh,

    I need your inputs on couple of stocks

    1. FSL, currently trading at 8 rs, company is in profit throughout but just cannot sustain. What issue you see in this and can a quick bounce be expected. Also horizon for 1 yr and i hold this stock with avg price of 33 Rs.

    2. Anantraj

    Regards,
    Sanjay

    Reply
    1. nooresh
      November 26, 2011

      Fundamentally many doubts on the cos.

      Also lets wait for some turnaround signals. But a must keep in radar.

      Reply
  5. dharani
    November 26, 2011

    sir i want to buy bgr energy @200 for small pullback,, is it good idea..

    Reply
    1. nooresh
      November 26, 2011

      Will prefer to wait for turnaround signals.

      Reply
  6. Hari
    November 27, 2011

    Whats ur outlook on Patel Engineering ?

    Reply
  7. Rajul Gala
    March 26, 2012

    What about Adity Birla Nuvo @950 level can I buy at this level or any dip is expected. Tell me about Dabur/ Fortis Health Care/ MCX

    Reply
  8. b k sharma
    May 12, 2012

    can you guide me on diamond power infra, shriram transport finance and solar industries. can we start buying these stocks at current levels.

    Reply
    1. Nooresh
      May 13, 2012

      I dont track the 3 stocks closely

      Reply
  9. P.AYYAPPAN
    October 26, 2012

    SR, I M NEW TO THIS STOCKMARKET,I AM TRADING IN COMMODITY , BUT FROM UR SITE ,I AM GOING ENTER IN THIS MARKET.

    Reply
    1. Nooresh
      October 27, 2012

      Good ayyapan keep stoplosses

      Reply

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