Posted By : Kishore B.S
Yesterday as envisaged the markets and Indices held on to the 5540 mark though at the 5549 mark the selling was huge enough indicating that the correction could continue further yet the Indices managed to bounce from the lows to close on the flat note yet again for the second consecutive day.
With this closure for the second consecutive day the Indices have technically pointed out that the correction or consolidation phase for the Nifty is likely to be over if the Nifty manages to close above the pivotal level of 5610 today.
On the domestic front the Parliament Winter session is starting today and hence their is lot of speculation in the markets that the FDI in retail would be strongly opposed by the Opposition in the House and their might be a likelyhood of the same getting even put to debate and vote creating a volteface for the Ruling Congress UPA team.
If this turns out to be true coupled with the Fiscal Cliff of the US then their more chances of the Indices retracing its upmove back to the 5200 levels with 5400 being the immediate target level. However if nothing ontowards happen in the Parliament today then there are chances that we could bounce back a little of the correction witnessed for the last 6 sessions to around the 5610 mark and if that holds we would probably inch up further to the 5680 levels by the expiry next week.
The technical charts are indicating a similar pattern of the above said picture that the markets are crucial for this week where in if the Indices close above the 5620 levels then the negative pattern created last week would be negated and we would inch up to the 5680 zone and at this juncture the advise would be to buy with stoploss of the 5520 …….
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)