Posted By : Kishore B.S
The last week had been remarkable for most of the Global Indices across the World, and Needless to say even to our markets which made a smart bounce back from the lows of the 5630 levels to the Gap target of the 5940 levels which was a remarkable 5% plus rally at an hour when most of the Analysts had written off any possible bounce back and were talking of the 5500 and below levels.
But the Indices and technical charts have their own peculiar ways of predicting the markets, and clearly indicated that they were oversold and bounce back to the 5800-5940 was in the offing, has pointed during my earlier Blogs, sooner or later.
And that is what exactly the markets did bounce back from the 5650 levels to the 5950 levels in just 3 sessions. And with this bounce back above the 5940 levels the charts are indicating that the uptrend that kick started from the 5200 levels is still valid and the downfall was just a correction of the Upmove, and the same would be confirmed during the sessions of today and tomorrow.
At this juncture it would be wise to look out at the momentum the Indices given today and tomorrow, and especially if the 5880 mark is held and the 6000 levels are bumped off on the higher side, since a crossover above the 6000 mark would be clear indication and sign that we would create a new high soon above the 6300 mark and any dip below the 5880 levels in the next 2-3 sessions would negate this view……..
(Inputs: Basket option Research bureau – Bangalore)