Posted By : Kishore B.S
Yesterday the markets remained largely range bound and in a short trading range of around 20-30 points. From the perspective of the market participants it was clear directional move that the Indices now is going through some consolidation phase.
The technical charts are Indicating that the correction that we witnessed last week was just the beginning of the larger correction or consolidation phase where the markets and the Indices after this remarkable rally could set into the mode sooner or later.
The charts are also indicating that since the Indices are treading near the 20 month highs the psychological fear of some correction is looming large in the minds of the participants and hence the markets are going into the volatile trading mode where time and again they are failing to crossover the 6000 mark soon.
Given the amount of the moves in the last few sessions the bulls seem to be loosing out the steam and bears seem to be slowly tightening their grip and will succeed if the 5880 level is broken down.
At the current levels it would be wiser to slowly start booking profits and sit on some cash for the dips to occur to re-enter…..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)