Posted By : Kishore B.S
Just when the bulls were hoping to come back into the mainfront by dominating over the bears after the strong closing on the Thursdays session, leaving behind the Cobrapost scam behind, the issue rocked the markets again on Fridays’ session where the Top three Private banks namely, HDFC, ICICI & AXIS tanked, with ICICI tanking by nearly 5% followed by the news of the managements decision to suspend 18 of its employees.
Technically the markets were on the verge of the breakout of the Inverted H&S pattern above the 5990 levels, with target of the 6300 in the next fortnight, but the correction on the fridays session has put that version on hold, and has diverted attention back to the 5800-5750 levels, which now needs to be closely watched for the 6300 target levels, which is still possible if the RBI cuts the key rates during its Review tomorrow.
Today, however the Euro crisis is back into limelight and the markets are likely to remain under pressure, since most our Global peers are down by nearly 1.5-2% which might influence us as well, but if the 5750-5800 support zone hold then one can look at buying for the 6300 target levels.
But if the 5750 is broken then we are sure to witness the 5680 support zone which if cracked means the 5580-5500 downside target for the current markets would happen for sure ………. lets keep the fingers crossed and hope that the RBI would favour the bulls and growth rather than the bears and pessimism…..
(Inputs: Basket option Research bureau – Bangalore)