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.
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