iCharts Discussions

[vivek999]

March 5, 2008
8:00 am

Note: Traders are requested to use this information for their technical analysis. This view is based on my understanding of Technical Analysis.

Friends,

Sensex and Nifty are quoting below 200 DMA, and I have seen articles which have given SELL recommendations.

I have been telling my friends since Sunday 2nd March 2008 that, Sensex 16200 to 16300 level is a critical level, as the Trendline from 2002 cuts across these levels.

Yesterday (4th March 2008), Sensex low was 16164. Sensex did not remain below 16200 level for more than 5 minutes. This price-action indicates that 16200 level provided a good support. Hence, I'm of the view that 16.2k to 16.3K level on Sensex is a good level for positional buy with a Stoploss. The stoploss could be based on your risk appetite. My view is that the stoploss could be 1% of 16.2K (i.e. around 16050) or 2%. If the Stoploss is breached, it would be good to reverse the position.

There are news going around that banks stocks are SELL because of exposure to Subprime. I've looked at the EOD charts of SBI and ICICI. Currently, I'm of the view that they may bounce back, and I think it would be good to go long positionally. However, I would suggest that it would be better to wait to see Friday low (29 Feb 2008), and then take a Buy position. Do keep a stoploss based on your risk appetite.

Happy Trading!

Regards,
Vivek

Mandatory disclosure: The analyst has no exposure to any scrip/s recommended above.

[vivek999]

Sensex range on 5th March, 2008: 16,253.02 - 16,595.64

Buying opportunity was available at the range (16.2K to 16.3K) that was mentioned in my main-article.

[kakshay]

if sensex below 200 dma one should sell always.