Crucial level for Sensex at 12,860: Bose

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Rajat K Bose See what other Experts & Brokerages are saying about Tech Mahindra See messages about Tech Mahindra Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Technical analyst Rajat K Bose states that the crucial level for the Nifty would be at 3711,  which is just one point above yesterday's closing level. He further adds that if the Nifty manages to remain above 3711, then the next level to watch out for will be 3720 on the upside.

Bose informs that the initial major support area for the Nifty would be at 3,696 and then at 3680. Unless the Nifty goes below 3680, Bose says it will not be a major concern for the market.

As regards the Sensex, Bose states that the crucial level would be at 12,860. If the Sensex manages to remain above this level, then the next level to watch out for would be 12,881.

Excerpts from CNBC-TV18's exclusive interview with Rajat K Bose:

Q: Technically, how are you feeling about the market and where do you see support for the Nifty?

A: First of all, the crucial level for the Nifty will be at 3711, one point above the closing level. If it maintains above 3711, then the next level to watch out for would be 3,720 on the upside. The major support area, as far as Nifty is concerned, first would be at 3696 and then it would be 3680. Unless and until we really go below 3680, it will not be any kind of a major concern.

Talking about the Sensex, the crucial level is again at 12,860. This is a very crucial level; if it were to maintain above that, then the next level to watch out for would be 12,881. While moving up on those three days, when the Sensex moved up by more than 600 points, there had been two gaps.

One gap was between 12756-12785. This gap, in my understanding, is likely to be filled, if the Sensex were to fall below 12,820 because I've a feeling that there could be a little more downside before the market actually moves up again. I actually expect that 12756-12785 gap could well be filled, maybe in one or two days time.

Q: As a trader, what will be your next move on the Nifty?

A: Actually, I would watch a bit more. Of course, there are stars like Tech Mahindra , which has gone up very substantially. But let some more time go. I would say that 12,937 is the crucial level above 12,881. So it went up to about 12,925. So now if the Nifty manages to stay above 3,711, and the Sensex gets past 12,937, then there would definitely be a case for going long.

Rajat Bose on stocks and sectors to buy and sell today:

Glenmark Pharmaceuticals - Skeptical

Glenmark is actually at a 52-week high at Rs 397, it had closed very close to that. So if it was to trade above Rs 397, one would see it moving up further. But generally on those days when Glenmark has had a move of this kind, it tends to consolidate on the very second day.

So unless Rs 397 is decisively crossed, I would not advocate fresh buying at these levels. But definitely those who have purchased this stock earlier should continue to hold with a stop below Rs 380.

Balrampur Chini - Positive

Balrampur is a clear buy. Till yesterday I was not looking at sugar. But with the kind of movement that sugar stocks had given yesterday, it looks as if sugar stocks have some way to go, especially Balrampur, Bajaj Hindustan . In case of Balrampur my stop is something like Rs 105.5, and it is expected to move up to something like Rs 114 to Rs 119.

Indiabulls - Skeptical

Indiabulls looks like a buy. It is likely to move up further, with a target of something like Rs 436. If Rs 436 is decisively crossed, then it could actually go up to something like Rs 446. If there is any reverse swing, then Rs 417 to Rs 415 is the area where a lot of support is likely.

SAIL - Skeptical

The movement in SAIL has been very good, but I would really wait and see whether it decisively crosses the Rs 90 range. If it were to do that, then definitely Steel Authority is good, but I would suggest no fresh buying at this juncture. It could actually go up to about Rs 93.

Disclosures:

I have talked about Balrampur , Steel Authority , Nifty futures, Indiabulls , and these are the counters I remember where I've actually given trading recommendations in the past to my clients.