Posted By : Kishore B.S
The markets closed on a sobre note on start of the week, with the Indices witnessing good volatility where the swings were between both sides of the spectrum opening on a positive note, trading in the negative zone for most part of the session and then moving into the positive note by noon, only to close in the negative zone again by the end of the session.
Infact this kind of volality at this point in time where the Indices are in a corrective mood post the fall on friday adds to the fact that the negative sentiments are prevailing amongst the market participants, and given the sobre note and closing above the trendline of the 5880, bulls dont have to completely lose hope yet.
The technical charts are indicating that the markets are in the corrective mode still and a fall below the 5880 levels cannot be ruled out immediately unless the Index bounces above the 5930 mark for 2 consecutive days. Most of the PSU banking & Metal stocks are indicating early signs of Oversold positions, and this is the reason the bulls can hope not to be butchered badly until the 5840 levels are breached with higher volumes.
The charts are also forecasting that till the 5840 levels are intact the bulls can still prevail resulting in a small bounceback to the 5940 levels and incase the 5840 is broken off then the 5800-5740-5630 would follow soon.
Lot can be said and envisioned but it is for the markets to decide the course that it would tread and for all of us here it would be worthwhile to just follow the cues……