Friday Jan 02 2009

GLOBAL RALLY NEED VOLUMES- 01-02-09

Sensex Technical View :

In the last update it was discussed that 9000-9200 is the bottom range. Sensex made a low of around 9162 in the range and close to the trend line zone and gave a sharp bounce back to 10k.

Yet again the index is closer to the upper end of the range with many resistances in the band of 10050-10400. The formation looks like a triangle or simply put a trendline breakout above 10400.

 

Also if we see the previous channel comes to around the same zone. 4-5 sessions above 10400 would put the index back into the previous channel which has an upper limit of 12k. This red channel breakout led to the big fall to 8k in October.

The price action seems to be good with stimulus package and global support but an increase in volumes would confirm a breakout!!! Although the real action will remain with side counters and specific stocks in the week. Good trading opportunities expected.

Continue to watch the 10400 odd level closely before taking major commitments. 

Stocks

ABB
The stock has not given much of a bounce back since October lows and the range has been 400-480. A sustained move beyond 482 could tgt 505-535 in short term.

ICICI Bank
Seems a small cup and handle pattern in daily charts. Resistance around 480-490. Sustaining abov 480 should target 515+ levels. The volumes are low so a confirmation of breakout would need increasing volumes.

IDFC above 72 , Kotak Bank above 400 , Yes Bank above 83 would see a move of 10 % + in the week. Traders can keep a stop of 3 % from cmp.

SCI, Ge shipping and FSL could be surprise movers of the week with volatile upmoves.