Posted By : Kishore B.S
The charts yet again proved that the rally on Monday was just a flicker due to the GAAR deferment and that the trend is down with the lower target almost intact for the days to come.
As indicated in the chart the target zone of 4882 now seems imminent in the days to come which would be nearly 61% Fibonacci retracement of the Upmove from 4600 to 5630 levels made during the Jan to Feb period. Also given the chart pattern some medium term to long term investment could be easily made below the 4900 levels since that would also be nearly 14 times of the projected Index earnings of FY13 which makes it a good fundamental buy as well.
Overall the Index has been in a downtrend but some positive offshoots during the later session or tomorrow as a relief rally cannot be ruled out.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)