Posted By : Kishore B.S
Finally the indian markets heaved a sigh of Relief by rallying after the continuous fall for the last 6 sessions to 7 months low. Though the rally was not that enthusiastic and participative across the sector yet the rally sustained itself which is something of a good factor for the participants.
Many of the analysts were talking of the 5300 levels on the Nifty by another fortnight, however the support of the 5460 has been respected for the time being and we have successfully closed above the 5550 mark.
Looking at the charts at this perspective, the rally yesterday is suggesting that the markets is likely to continue the uptrend even today to the resistance level of the 5630 where the selling could be witnessed, and if that levels is breached could lead to further upmove upto the 5700 levels.
Tomorrow is the important day where the INFY results are likely to give the market direction, and today the IIP numbers could give the cue as to the direction.
Having said this, I would state that new positions can be initiated if the markets and indices sustain the 5650 levels for today or tomorrow and till then it would be worthwhile to stay afloat on cash……
(Inputs: Basket option Research bureau – Bangalore)