Posted By : Kishore B.S
As the hopes of some relief rally post the carnage due to the political uncertainty was being expected the CBI raid over the DMK stalwart Stalin’s premises, triggered new lows for the already negative sentiments of the markets.
The markets which were trading in the positive trading during the first half of the session, tanked by nearly 100 points from the days high, indicating clearly that the bears have an upper hand and all the support levels, are just numbers now. And if the markets fail to hold the 5630-5600 levels for the next 2 sessions, new lows of the 5200 cannot be ruled out in the next month.
Technically the charts are indicating oversold levels, but the carnage is here to stay, with the bears ruling supreme and upper hand, there is little scope for the bulls to emerge and the indicators are pointing out of further dips to the 5500 levels which if not sustained could lead to the 5188 levels.
However due to the oversold levels, if any bounce back above the 5740 levels are made for the next 4 sessions, then the bear carnage would be exhausted, and if not the above predicament is here to stay.
(Inputs: Basket option Research bureau – Bangalore)