wednesday, FEBRUARY 18, 2009

SENSEX DOES 9000

Sensex Technical View :

 

Yesterday it was mentioned Sensex may go towards 9000 and we have seen a low of 8994 which is close to the trendline and support. Failing to hold this level would imply a test of 8750 which is the next support. 

 

A sustained move below 8500 would possibly lead to a quick move to 7700-8300 band. Continue to remain short and book out at 8750-9000 and wait for a dead bounce to decide next move. 

 

Stocks to watchout for :

 

Colgate the only long choice on dips pullbacks ( defensive sector ) book on 10% gains. LnT and Bharti still some more downside left trail if short.Nifty 2700 pe discussed on chatbox ( client call too) moves from 28-30 to 50 booking advised. 

 

Risky option trade buy call option of 2900/2800 strike or Mini Nifties when Sensex goes to 8750 and Nifty 2700 for a bounce back. 

 

Infosys 

 

The stock broke below 1240 and 1190 support and is now headed towards 1140 from where it could see some sort of bounce. Booking advised around 1140-1160. 

 

HDFC Bank and ICICI Bank 

 

Both the stocks which were on the short radar ( ICICI sell call around 410 for clients does tgt 380) . Similar patterns and similar returns. HDFC Bank could see some bounce from 860-865 so booking advised around that zone or trail the position. ICICI below 380 the next support is 355-362. 

 

AXIS Bank could be a risky buy around 378-384 with a stop of 375 for a pullback of 15-20 bucks. below 375 it can break the October lows. 

 

PSU banks 

 

Finally the PSU banks like BOI,BOB, OBC and PNB have started cracking under pressure. It would be an interesting trade or investment closer to October lows although they need to crack more for that. Long term investors can keep a watch.

 

TCS 

 

The stock has been in the range of 480-530. A break below 378 with volumes would give a short trade for a tgt of 455. 

 

RNRL and Rcom below 43 and 155 may actually knock new lows also. Traders can avoid longs. 

 

 

Glaxo Pharma 

 

It seems we have yet another defensive bet being played on. Buy on dips to 1160-1170 with a stop of 1135 for short term 10% bounce.