Yesterday turned out to be an another lacklustre day for the Indices and the markets alike though it gave some positive vibes during the second half of the session yet lacked the confidence and aura.
The markets remained largely subdued and negative inspite of the ample global positive cues yesterday where the Indices tested the lows made during the last week for 2-3 successive times and the relief factor for the bulls being the bounce back it made from that lows, sending across the signals that the 5630 mark was here to stay where new positions can be added for short swing trades.
The charts are indicating signs of some rally if the 5700 mark is taken out on the higher side if the bulls have to barge in and given the lacklustre market sentiments prevailing coupled with the expiry next week, if at all the higher barrier of 5700 is taken out then its sure as the technical charts are indicating the target could be easily 5880 which has been repeatedly been highlighted.
On the lower band if the 5630 levels which has been seen as a strong support level for the last couple of sessions, if broken could send the markets in a tizzy easily making the bears to rule supreme thereby spinning off the Indices to the 5500 levels by expiry rather easily.
Given these parameters it could be easily said that the Indices are now ruling in the range bound trading zone of 5630-5700-5720 levels which can be said to be a no trading zone expect on the lower band or crossover of the higher band. Untill then the ideal strategy could be to identify the midcaps and just watch the fun of the breakout of any of these barriers.
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)