US Indices – Dow and S&P 500 / US Stocks look More Bullish and interestingly poised.

Although this post may be of zero interest but while looking at global indices and stocks came across some seriously bullish charts.


Lets look at them




Dow Jones Weekly ---- Its reaching a crucial resistance zone of 12500. Although one may even take it as a rising wedge but sustained closing above 12500 for a week will open very big bullish implications.




Dow Jones Daily Charts ----At 3 month highs amidst gloom !!

But a move to 12500 and then 12800 seems probable


Now some large caps from the Dow 30




Chevron --- Near yearly highs and on verge of breakout




Exxon can get into a huge move if it starts closing above 85-88  Big Inverted Head and Shoulders !




Intel --- This is a favorite of one of my techie friend based in US. Now the stock is at 6-7 year highs. Sustaining 25-25.5 can lead to 30 + !.




Johnson & Johnson --- A good cup and handle




Procter & Gamble ---- Now this stock is closer to 2008 highs and already 5-6 times. Above 67 we can see a quick jump.




Verizon ----- Now thats a clean cup and handle breakout !!




MERCK --- Another clean breakout. A good 10-15% jump still left.


Now a final look at S&P 500 and S & P 500 Vix


S&P 500


S&P 500 ------ A fresh breakout on daily charts !!


S&P 500 vix


We had looked into this S&P 500 VIX in our post about Fear hit a 10 year high around the world.

The VIX has tapered down but we are still not in complacency from bulls. So we will review this only if we go to 15-18 levels.



Well this may not impact Indian Markets but at least there are no shocks from the Global market expected. The view remains to stick to quality stocks and right now have set sights on LnT and BHEL to be looked into in large caps.


Btw Smartlink has tocuhed 52 levels up 20 % from 42. Maintain my long term hold on the stock. NESCO is a good bet at current levels keep on accumulate. Do your own research.



Happy Investing,


Nooresh Merani


  1. Naheem Pasha
    December 26, 2011

    Dear Nooresh,

    today i sold Smartlink at 52.35, purchase average value was 44.16, can i re purchase these stocks around 48 again for next up move or what should be the ideal price for re purchasing ??

    1. nooresh
      December 28, 2011

      Hi Naheem.

      I would continue to hold on to the stock as its on verge of a technical breakout. Fundamentally any where closer to 48-42 remains a buy

  2. SHREE
    December 27, 2011

    Really good analysis nooresh. Please keep up the good work.

    1. nooresh
      December 28, 2011

      Thanks shree

  3. Anjali
    December 27, 2011

    Sir is it right time to start buying BHEL?
    what is the stop loss? when shall i average if fall fur ther

    1. nooresh
      December 28, 2011

      Hi Anjali ,

      As a trader 220 will be a stoploss. Investment one should keep a stop of 190.

  4. Abhijeet Mitra
    December 28, 2011

    Hi Nooresh ji,

    I want to invest in Balmer Lawrie & Co. at which level should i invest for long term of 5-10 year as i think it is fundamentally very strong company. i want to buy 500 shares, how much downside i can expect in this downtrend.

    Abhijeet Mitra.

    1. nooresh
      December 29, 2011

      Hi Abhijeet,

      Yes that stock comes into radar in every bear market. So falls should be accumulated and from current levels 10-15% correction or more will be temporary. But dont expect super normal returns from the stock.

  5. Abhijeet Mitra
    December 30, 2011

    Thank you Nooresh ji for ur valuable advice.

    1. nooresh
      January 1, 2012

      Welcome Abhijeet,

      Keep reading and commenting.

  6. Naheem Pasha
    January 1, 2012


    What is the reason for SMartlink hitting lower circuit on friday, shall i expect to catch that around 41-43 in this down trend ??

    1. nooresh
      January 2, 2012

      Hi Naheem,

      Its in T group and promoter buying seems to be over so volumes are dead. Its a funda call. I continue to like at 47-40

  7. Mayuresh Athalekar
    January 27, 2012

    I want to invest in BHEL, ONGC for time of 1-2 yrs. What one is good to pick ? Any other suggestions ?

    1. nooresh
      January 28, 2012

      Hi Mayuresh,

      BHEL at 230-260 seems a better bet.

      And why stick to PSUs?


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