Posted By : Kishore B.S
After the wonderful session of breakout and consolidation for the next trading session, the markets and Indices broke down below the trend level of the 5730 mark to close below the 5700 levels on Fridays session.
With this closure below the critical support level of 5726 the markets are back now to the larger trading zone of 5660-5780 now setting the tone amongst the investors and participants alike that the trading range would continue further on for some more days, and that the new highs expected of 5900 would take more time to come.
The technical charts are indicating that the markets are ripe now for some consolidation and that the breakout now being nullified could take some time for confirmation and the markets could tread lower for some time extending the period of consolidation further which could be used to make some investments decisions.
With that focus and intent in view it would be advised to buy on dips with tentative stoploss at the lower end of the trading band i.e 5660 for time being …..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)