The Indian markets caved in yesterday during the last one hour of the trading session, indicating the dual mindset amongst the participants as to the direction of the markets.
As mentioned during my market outlook yesterday the 5980-6000 is the critical pivot support levels to be watched for the current rally with target of the 6118 to be reached, however yesterday fall as brought this target zone under the scanner with the probability of the target levels getting reached at a crisis.
But the charts are indicating that the markets and especially the Indices are getting more or less stock specific now, where the Indices are not getting prominence when compared to individual stocks which have more volatility, and directional moves based on the Quarterly numbers given out by them.
It is also important to note that at this point in time most of the banking, metal stocks have been getting hammered and only a selected few IT stocks have performed better when compared to the indices.
Hence the outlook of the markets as per charts are indicating that if at all the 5980 mark is breached today on the lower side then the target of the 5880 would become valid with this January being touted as the volatile start of the year in the last 3 years, where historically the Indices have performed better during the month of January.
With this update it would be advisable to watch out for todays closure which if below 5980 would indicate downtrend with target of 5880 and above 6028 with target of 6118 ………..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)