Posted By : Kishore B.S
Hi Friends !!!!
After the dramatic fall on Friday and gap down opening today, the Nifty moved do
wn all the way down the first support zone of 4988 and bounced back from there during the later session due to the positive sentiments generated by the postponement of the GAAR by one year.
That apart the withdrawal of the Sales tax on the Gold Jewellers added further momentum to the lacklustre Policy reforms from the Govt giving an arm in the boost that some Policy reforms would be announced soon to the lagging Economy.
In the overall hoopla it remains to observe that the Indices have failed to cross and close above the resistance zone of 5140 which is the lower edge of the Flag breakout and unless the same is breached Positive sentiments are not likely to emerge in the markets.
Given the backdrop of the May series over the years and last months momentum a range bound momentum of 4900-5200 for the current series cannot be ruled out.
(Inputs: Mr. Hemanth V, Faculty TA, Stock Market Institute, Bangalore)