Posted By : Kishore B.S
Yesterday again the markets remained volatile displaying clearly the fact that the bulls have now lost the steam and confirming the chart Indicators that the next upmove would be only if the 6000 levels are crossed.
Though the charts have indicated that the 6000 is critical yet it has not given any signal of bearishness as well which is a relief for the participants across the board those who are not bears. But any closure of the Nifty Indices below the 5880 levels would be a clear sign of the bearishness that is likely to set in and the target would be 5800-5760 immediately and there are chances of the Indices testing the 5600 levels as well if the 5760 levels are broken.
Though this might just be insights and the probability of their happening seems little yet there is no harm in exerting caution at this time of the market mood.
Yesterday the FED did declare some QE measures but were not cheered by the markets since they lacked the market expectations, and the signal of the FED to link the Interest rates with the Inflation and Employment Data seemed to deter the mood of further easy money flowing into asset classes.
On the Domestic front nothing much notable has changed and the charts are Indicating that the markets could well remain range bound between the 5860-5960 levels for time being and the trades could be executed in the direction of the markets on either side of this range and till then it would be in the best interest to relax with some cash in hand…….
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)