Posted By : Kishore B.S
There is a popular saying that compares the stock markets with the desert, and the irony of that slogan is that they compare the direction of the markets with the Mirage of the Desert.
The momentum of the markets today can be aptly compared to the statement above of the Mirage of the desert. Just when the things seemed settled after the last 2 days rally that ensued after the continuous downward trend for more than a fortnight, the bulls were upbeat today which was evident in the opening hour of the session. But the Mirage was completely visible by the second session of the markets, where most of the gains posted by the stocks yesterday were neutralized beautifully by maneouering the Indices at flat levels.
The charts are indicating after the closing today that yesterdays rally was just another dead cat bounce and the same would be confirmed on the thursdays session, by the indices which if were to close above the 5940-60 levels would mean that the 6040 target is still intact and if the closure is below the 5920 levels would predict clearly that the downside of the 5800-5750 levels will come sooner.
For those who have made positions today based on yesterdays closing prices it would be wiser to exit their longs if either of the above levels are breached…..