Posted By : Kishore B.S
The Indices remained largely range bound on Monday and it was a lacklustre opening for the week to say, infact the tight range bound can be digested due to the fact that the Indices have rallied by a spectacular 300 points or 5% during the last week.
Now at this juncture after the rally it remains to be watched and seen, if the rally would sustain and move further higher like the other Global indices which are trading at their 5 year highs which means to say that the Nifty would crossover the earlier high of the 6300 levels or we would take still more time.
And for the above statement of the crossover of the 6300 to be valid the Nifty Indices need to maintain above the 5880-5850 levels for the next 2-3 sessions, confirming to us that the correction is over and we have rekindled another bullish upmove the confirmation of which would be a move above the 5990-6028 levels during the course of this or next week.
But if the Indices were to crack down below the 5880-5850 levels during this week then the entire above indication of the charts would be negated and the probability of a move down to retest the 5630 cannot be ruled out.
However, the charts are Indicating the probability of the bulls to rule supreme this time, and hope that it will come true…… and for the day it can be said that the markets would remain range bound with more of a bullish bias….
(Inputs: Basket option Research bureau – Bangalore)