Posted By : Kishore B.S
After the lacklustre session for the last few days yesterday the markets were much momentous, with the clear indication of direction for the trading day that the markets would slide down.
Though the extent of the downfall was not that great and much, yet the impact that it resonated amongst the market participants especially the technical analysts was significant. The slip of the Indices below the 5880 levels was much much than enough to give the note.
The charts have indicated with yesterdays downfall note that the slide could make the Indices to test the 5780 mark sooner or later for the time being, if all things remain as the same. If at all the rally has to sustain then we need to push above the 5940-60 levels to give the clear direction that we would further inch up to the next target level of 6000-90 in the days to come.
However it then it would be safe to assume and short on rallies with stoploss of the 5940 mark for target of the 5860-5790 levels.
The charts are also indicating if the 5840-60 mark is held then the markets could easily remain range bound for some more time similar to the one we witnessed during the last 2 months where the range of contraction could be 100-150 points and then the further direction would be clear, in view of this predicament, it would be wiser to buy around the 5840-5800 mark and sell around the 5900-30 levels for the time being.
However the Inflation numbers to be announced today and the RBI policy that is likely to come out next week could be the triggers that needs to be watched out for …….
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)