Posted By : Kishore B.S
Hi Friends !!!
The markets moved down yesterday to cover the GAP between the 4880-4900 mark and also to complete the downward FLAG target of 4886 to the levels of 4876 where some support set in.
After the negative news yesterday of higher Inflation numbers and last weeks weak IIP numbers most of the Negative news flow seems to have been factored in now and the markets have been resilient with not much of major break downs or collapse.
This resilience near the support zone indicates that some buying at current levels are setting in off late with the realisation that given the Earnings churned out the Valuations are not all that bad and most of the Rally made have been offset due to which stocks have become approachable again with the kind of growth in Earnings and projections.
The charts too are indicating now that the correction has almost kind of finished since the falls have subsided and some relief rally to 4980-5000 levels cannot be ruled out if the 4860 mark is held.
However if the 4860 mark is breached then the correction could be deeper to 4600 levels which could cause lot of headwinds and that seems unlikely for now.
It would be ideal to buy at current levels for some relief rally to 4980-5000 which seems justifiable.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)