SMI – 18th February 2013 – Market View

Posted By : Kishore B.S

Hi friends,

After the dismal annual results of SBIN and better than expected Inflation data the markets remained largely range bound and volatile and this generally happens when the markets are undecided about the course of the direction ahead.
The charts are indicating that the markets are in a flux state where the direction is unclear since the indices are hovering around the support trendline failing to crack the 5880-5864 support zone and unable to crossover the 5930 hurdle as well. Given the global sentiments and the impending Budget scheduled for this month end, the markets could be jittering ahead of these events.
Also the fact that the charts are indicating that after the healthy correction of nearly 5% from the heights of 6111 made after the rally from the continuous rally from 5200 levels. The correction was a retracement of the 38% which again is the 5880 levels and hence the solid support at these levels mean that the markets have chances of recovering back to the 6000 levels again.
With this predicament, it would advisable to buy with stoploss of 5860 mark for time being and target of the 6000 levels sooner or later.

(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)

Cheers!!

Team SMI

After the dismal annual results of SBIN and better than expected Inflation data the markets remained largely range bound and volatile and this generally happens when the markets are undecided about the course of the direction ahead.
The charts are indicating that the markets are in a flux state where the direction is unclear since the indices are hovering around the support trendline failing to crack the 5880-5864 support zone and unable to crossover the 5930 hurdle as well. Given the global sentiments and the impending Budget scheduled for this month end, the markets could be jittering ahead of these events.
Also the fact that the charts are indicating that after the healthy correction of nearly 5% from the heights of 6111 made after the rally from the continuous rally from 5200 levels. The correction was a retracement of the 38% which again is the 5880 levels and hence the solid support at these levels mean that the markets have chances of recovering back to the 6000 levels again.
With this predicament, it would advisable to buy with stoploss of 5860 mark for time being and target of the 6000 levels sooner or later.

 

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