Posted By : Kishore B.S
The markets have been largely volatile for the last few sessions, and the trend has been as analysed by us during the last week, where the Indices have been moving inside the trading range of the 5860-5940.
This trading ranges are the most annoying and losing streak for most of the traders and investors alike since the clear direction is not present and both the supports and resistances are challenged, very often leading to the triggering of the stoplosses. And hence the safer side of the option would be sit idle or on cash till this ranges are broken.
The technical charts are indicating that the range bound momentum is indicating a mixed trend where the first one says that the uptrend would resume above the 5946 levels if taken off during the course of this week and the nifty could easily reach the new highs of 6090 in the days to come.
The other trend suggests that the current consolidation could be the wait and watch indicator for the bulls, since they are losing their steam and if the levels of the 5860 is broken on the downside the markets could slide down and Indicate the start of the bear phase of the market where the Indices could easily correct to the levels of the 5600 in the days to come.
Both the trend could be indicated but the precise direction would be the one the Market shows to us, which is to be waited and looked for as to which would happen first whether 5946 or 5860 and the rest would follow accordingly …..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)