BULL'S EYE - SENSEX VIEW EARLY FEB '10

SENSEX has nearly touched previous medium term high (Aug '08 and May '09) and was inches away from much publicized 200 day moving average, before arresting the correction yesterday ie 8th Feb and made a bullish long legged doji followed by firm up move with higher high today indicating that the correction could now be over. This was further confirmed by various indicators by moving up from oversold zone to very close to short covering zone. In fact some stocks have already seen some short covering. Whether the the sensex can still go down? - not likely, can it stabilize at these levels - no but a mild broad-based short covering rally seems a certainty. It would not be surprising to see the index cruising to 17000 around the budget time.

N.B.

Please download list of stocks which have made initial move after correction and are likely to continue the move. It is believed that the first movers are the most reliable bullish stocks for medium term. Also included are short to medium term targets and support levels.

MEDIUM TERM PICKS

BULL'S EYE - SENSEX VIEW END JAN '10

SENSEX takes strong support around 16210 and should sustain above the channel support line too. It may take a dash below 16200 briefly but should close above the support in weekly chart.

NIFTY too has honoured strong support at 4810. It is showing more weakness than the SENSEX as it has breached the channel support in daily chart. However the combined volumes of both the indices  suggest that the bottom may be very near. Adventurism at this stage could however be dangerous and entry is advised only after an emphatic upmove.

BOMBAY DYEING A HUGE BREAKOUT - TARGET 680

BOMBAY DYEING made a huge breakout from intermediate high with equally high volumes indicating very smart moves ahead, A shouting buy on every dip or consolidation for target of 590 n near term and 680 in med term.

SHRIRAM TRANSPORT REPEATED BREALOUTS - TARGET 600

Shriram Transport has been on the break out spree and is in the All Time High club. Volume are good even at these prices and looks very bullish. Should target 535-540 in short term and 600 in medium term.

HDIL - BUILDING UP MOMENTUM - TARGET 420

HDIL is showing good building up of momentum and is in a steady up move. Looks good for immediate target of 420.

TATA STEEL GOOD MED TERM BREAKOUT - TARGET 720

TATASTEEL has been trading above previous med term high of 585 for past two sessions and the volume is above average showing very bullish stance in medium term. It should target 745 with resistance at 700 and fibonacci target of 722. A BUY on any dip.