Posted By : Kishore B.S
Perhaps nobody had thought during the start of the current month, that we would come across the 7 month low during April, when the world and global markets have been rallying, and the results season were due for the current year.
But markets have the peculiarity and hence the same goes by the predicament of the market scenario as well, due to which the current month has seen and witnessed the huge carnage of stocks across the sectors, where the bluest of the blue chip also has corrected by nearly 10% in the current month alone, thereby defying all the gravities of the financial parlance that blue chips are stable.
The technical charts though indicating huge oversold levels, perhaps showed that a relief rally to the 5700 levels was in the offing yesterday, and inline with the same the markets too bounced back to the 5600 levels, but the markets witnessed huge sell off at the 5600 levels resulting in the markets breaching the support levels of the 5530 and close below the 5500 levels, for the first time since september 2012.
At current levels the charts are indicating oversold levels and bounce back to the 5570 levels at bare minimum and above that would lead to the 5650 levels but for that to happen the markets need to hold the 5450 levels, failing which a downmove to the 5300 would be inevitable…….
(Inputs: Basket option Research bureau – Bangalore)