Posted By : Kishore B.S
Hi Friends !!!!
The markets remain largely range bound yesterday and moved in the range of 40 points taking support at the 4948 mark which also co-incides with the 61.8% retracement of the FIBONACCI line.
With this support levels the charts are also indicating that they might give some breather or upmove of the downtrend that has set in in the last few sessions to 5100-5140 levels since most of the negative news flow seem to have been discounted by the markets now.
Though the trend remains downtrend yet some bounce back or upmove as a counter act to the sudden fall seems to be in place which is a good technical move by the index. Giving credibility for the fall and also the moves thereby allowing investors and traders alike to make informed decisions and trades as well.
For the time being it would be advisable to go long with yesterdays close being the stoploss for some decent uptrend to 5100-5140 mark for the next 2-4 sessions.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)