Posted By : Kishore B.S
The markets seems to be hellbent on a consolidation phase, since all the negative news are getting factored in and the markets have been resilient by moving in the band of 5040-5150 in the last one week.
Inspite of the RBI status Quo and Fitch Ratings downgrade the markets were expected to open lower to the 5000 mark as predicted by most of the analysts advocating Doom, but the markets have their own path and grace which has been getting strongly reflected since the start of last week when the markets took refuge near the 5000-5050 mark and the same has been repeated yesterday and today again.
After the sluggish opening today and volatile swings through the trading session, the markets bounced back to close above the 5100 mark yet again. Though the markets made an high of 5109 during the start of Noon session, then dipped during the later hours yet the recovery came in the last hour of the trading session where the markets bounced and closed above the 5100 mark after the better than expected opening of the European markets and fading importance of the negative sentiments prevalent in the Indian bourses.
With today’s closure the market mood has been confirmed yet again that we are in the range bound trade where the consolidation of the 5000-5150 could lead to bigger breakouts on either side of the range which would be truly fruitful and delightful to the trading community at large. But the question as to when would be best for the Markets to answer and patience to wait would be the key……
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)