The markets have closed above the critical resistance zone of 6040 levels, and this is a clear indication that the 6118 levels would be reached sooner or later.
However going by the recent events of the markets post of the closer where RIL has given spectacular results beating the street forecasts, it would be undoubtedly, sure that the 6080 mark would be breached as the markets open on Monday, but what remains to be watched is that if the 6080 is held.
The charts are indicating that the 6118 levels is the current target, with stoploss of the 6000 levels for the time being, but given the volatility that has been seen, the RIL and PSU banks should be the saving grace, which if fails to hold and perform could lead to disasters.
The reason has been simple, technically the Private Banks, Metals and real estate pack are highly overbought and indicating that correction should be in progress, the IT pack has given its share already, alongwith the OMC companies, now, the only dark horse to be watchful should be the PSU banks which if unperforming would spell some disaster.
With that insight, i would leave it best for the markets to decide the direction, and also give the target of 6118 for time being, and strategy of buy on dips, with stoplosss of the 5980 levels. ……
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)