Posted By : Kishore B.S
The long wait for the markets to bounce back or end its correction after the continuous fall for nearly 6 sessions at a stretch seems to have fructified yesterday when the Indices bounced back by nearly 1% after 2 days of back to back flat closing.
Yesterday closing above the 5610 mark was much awaited since that was the direction and indication for the markets and participants alike that the correction for the time being is over and that the 5540 is the crucial level now.
As stated in my earlier outlook now it is important to watchout for this level and make new buying decisions with the stoploss as 5540 levels on closing basis for likely target of 5690 levels in the next 2-3 sessions. With this in mind the trading gets easier since the target and the stoplosses are known.
However it is vital to note here that the stoploss is quite higher than the target zone and hence it advises the participants to trade cautiously.
The technical charts had pointed out earlier itself that the markets could undergo some correction or consolidation once the 5700 mark was broken and also had indicated day before yesterday that the 5540 is the pivotal support level now. And with this the trading has shifted to a wider range of 5540-5700 for some time now.
The FNO expiry is scheduled for next week and also the Winter Session of the Parliament is starting off today due to which lot of volatility in the markets cannot be ruled out ……
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)