Posted By : Kishore B.S
Our Indices are reflection a sense of Indecisiveness in the last 3 sessions unsure as to the direction to be taken in the wake of the Global events shaping up and also the domestic expectations of some policy reforms after the Presidential ceremony which happened yesterday.
One of the Good things that happened was the increase in the Petrol prices on a Global increase basis, but the much expected increase in Diesel prices have not been done, which if done could bolster the Economic outlook due to the shrinking of the Subsidy bill to some extent but the same seems to be jinxed in the Political juxtapose.
The Technical charts are indicating a sense of Oversold zone, and the Nifty has been holding to the support levels of 5080-5100, which seems to be just the right factor for the time being, however given the magnitude of the fall, the charts are also pointing out that the correction far seems to be over as yet and some more fall could not be ruled out, if the crucial level of 5080-5050 levels fail to hold.
On the higher side the Gaps of 5160-5200 & 5240-5300 are yet to be covered and with the likelihood of the 5100 levels holding the Gaps might be covered due to sudden policy announcements which is the Silver lining.
Against this backdrop as the conventional advice goes it would be ideal to buy on dips .. and avoid shorts for time being.
(Inputs: Mr. Hementh.V, Faculty TA, Stock Market Institute, Bangalore)