Corrective Theme – Sell The Pullback
Short-Term: A Doji candle at 23.6% retracement (22,079) to 16,036 to 23,946 ascend emits neutral implications. Continue to sight possibility for a minute pullback towards 22,556 level. Conversely, a relapse towards 22,024 would threat renewed downside towards 21,823 and 21,497 levels. Near-term theme remains corrective. Sell on strength!
General View: Easing weekly momentum data coupled with a double-top pattern precursors intermediate correction ahead. This can potentially drag (wave 4) the index down towards 20,924 – 19,057 levels where the index would enter the 38.2% to 61.8% retracement zone of Jan 2013 to July 2013 rally (16,063 to 23,946). However, such correction will not reverse the course of primary bull trend, keeping the long-term trajectory intact for 25,000 and 27,270 – 29,039 levels. Investors should keep enough buying power to capitalize at such correction. We find strong potential in ENGRO, PSO, PTC, SNGP, NRL, EPCL, FABL and BOP.