Posted By : Kishore B.S
The markets bounced back during yesterdays session giving some head room or breather to the ongoing correction phase from the last 5 sessions and brought some cheer among the bulls.
However the rally failed to cross above the 4960 resistance level, which indicates that the cheer is likely to remain subdued and could be a one -day wonder since the resistance level of 4960 has not yet been taken out.
Given the fact that the support level of 4860 has been held there might be some rallies which could be small and accompanied with volatility like yesterdays session where the bulls and bears could face each other fiercely to dominate the markets and indices, but the support zone of 4860 is breached could lead to further panic to 4800 levels below which the indices could easily trace further down to the December lows of 4600 where another GAP made could be covered. On the higher side yesterdays High should be breached for the bulls to retain there supremacy above which the markets could claw back to 5000-5040 levels easily.
All said and done it would be best to let the markets decide the course and observe before getting into any side of the bargain. Also it would be advisable to get into the Long positions on dips if the 4860-4800 levels is held with strict stoplosses.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)