New Year Global Rally needs more participants and Volumes!!!
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
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.
Regards,
Nooresh
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