Posted By : Kishore B.S
The Indian Indices made a lovely comeback by the bounce made during the whole of last week where the Indices have rallied by a staggering 7% in the entire week.
Though the bounce back was long pending due to the highly oversold zone, yet the timing was perfectly synced to coordinate with the FNO expiry, where the OI levels of the 5800 CE have been nullied now, indicating that the technical parameters do work.
The technical charts are now indicating that going ahead in this week of the fno expiry the markets are likely to conitnue with their upmove towards the 5900 levels, if the resistance at the 5850 is fullfilled.
However the glitch is that from the oversold zone, due to the rally the markets and indices have touched the overbought territory and the week being short ahead of the expiry could affect the sentiments to some extent leading to profit booking.
If that happens the support zone of the 5750 should be watched out for, which if held means the 5900 is intact and if that is taken off then the dip to the 5680 would be inevitable…….
(Inputs: Basket option Research bureau – Bangalore)