Posted By : Kishore B.S
The markets remained yet again in a small trading range during the Tuesdays trading session as well, where the Nifty moved between 5890-6010 for most part of the trading session and then moved above the 5820 mark by the end of the session.
Though there was range bound momentum the most important fact to note was that inspite of the lower than expected IIP data, the 5880 pivotal level was not breached and it has been respected for the third consecutive trading session, which is indicating to the fact that if the Indices were to bounce back above the 5945 levels we could again hit the 6000 mark.
The technical charts are indicating that the markets are oversold at current levels and hence the consolidation or trading range which is likely to continue as long as the 5880 is respected, and a small bounce to the 6000 mark again cannot be ruled out above the 5945 levels.
The charts are also pointing out at this juncture that above the 5950 levels the short term downtrend that started off from the 6090 levels to the 5880 levels also would come to an end and we would be back into the medium term trend again, which is clearly up.
Hence the ideal strategy for all the participants at current levels would be to stay put and accumulate stocks, with stoploss of the 5860 levels, which if broken convincingly could lead the Indices to the 5760-5660 levels eventually.
However due to the upcoming Union Budget a sell off immediately might not set in, but a huge sell off in the markets cannot be ruled out, if the budget is not Proactive to stimulate the drifting Economy ……..