Posted By : Kishore B.S
The Indian indices bounced back yesterday on a solid note post the Inflation numbers, which though were above the expectation and inspite of the negative sentiments emanating out of the alleged money laundering scam against private bankers.
The technical indicators, of the support zone at the 5850 was held though there was some minor glitch post the report where the Indices tanked to 5790 levels, but quickly recovered the losses to nudge higher towards the first resistance level of the 5890 after the inflation numbers.
Yesterdays closing was at just above the pivotal level of the 5890 and the charts at this juncture are indicating early signs of the Inverse H & S pattern which would be confirmed if the indices close above the 5980 levels in the next 2-5 working days, and this pattern is suggesting the target of the 6300 as stated earlier.
But the pattern is not yet complete and would be confirmed only if the indices were to close above the 5980 levels and till then it would be wise to buy on dips with yesterdays low of the 5790 as the stoplosses…….
(Inputs: Basket option Research bureau – Bangalore)