SMI – 20th November 2012 – Market View

Posted By : Kishore B.S

Hi friends,

Finally after the halla boo and the negative sentiments prevailing and troubling the markets for the last 5 sessions where the broader Indices dipped to the new lows of 5540 levels there was some value buying due to which the Indices bounced back to close almost on flat note.
And with this closure of the markets and Indices on a flatter note it remains and has cast the opinion that probably we might be coming to end in correction that has been prevalent if the markets close above the 5610 mark today.
But though we can say much and pant on the same yet it is the markets that show and give the direction of its course of action in the days to come.
On that note the technical charts are pointing out that the markets are on the verge of creating a morning star pattern if the Indices close above the 5610 mark and if that happens then the pattern would be confirmed indicating to us that the bear phase or correction is almost over and hint us that some new buying can be initiated with milder target of the 5680 levels and on the lower side if the Indices fail to hold the fort and close below yesterdays low of the 5540 levels and cuts the 5526 mark we would flip into the free fall mode to the 5440 levels.
Hence todays closing and markets direction would be critical and pivotal for the bulls and investors alike to watch out for the course of direction in the next fortnight.         

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

Cheers!!

Team SMI

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