Our markets opened in line with the Global peers today on the positive side with the Indices opening nearly 1% higher than its yesterdays closing. Though the opening seemed strong on the positive side yet it was clearly visible that the momentum would not hold long after the last 2 negative sessions, created a dent in the minds of the participants of any impending correction.
On the similar lines the markets jitter-ed as the trading session progressed where at one point of the time during the noon session the Indices were seem trading on the negative terrain, retracing most of the gains posted by it. Though the markets seemed jittery at that point of time pointing further downside, yet they recovered on the back of the positive jibes created by Geithner and Chidambaram clearing air on the Retro taxes.
This positive jibes helped the Indices to track the positive thread again where the Banking and the IT stocks pulled the Indices into the Green by nearly a percent, but they were marked with volatility.
On the Technical charts based on the closing prices today, the Indices are pointing that the upmove witnessed today could likely continue tomorrow as well, since the Indices are not overbought unlike last week, after the last 2 sessions correction now the Indices are healthy for further advance, if the hurdle of the 5750 is crossed and sustained. As indicated in the blogs and write-ups earlier the target for the Indices in the near term is 5880 sooner or later if the 5680-5640 levels is sustained.
And as i write this the target of the 5880 seems imminent given the Domestic and Global factors and cues which are clearly pointing out at no major issues except the Euro crisis outcome of the ECB which is likely to be positive thereby supporting the Indian bourses as well.
This supportive nature as indicated in the charts clearly states that if the Indices sustain the lows made during the session on Monday if held could lead to rally and a breach of that level which is 5660 could spell Doom towards the 5560 mark.
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)