The mantra of buy on dips seem to be in flavour, and that was proved right yet again during the trading session of yesterday. The Indian Indices are getting more and more range bound with the Nifty hovering between the 6000-6100 level now ahead of the key RBI policy meet scheduled for 29th of January.
Historically, January has been a favourite bullish month, but markets being always nasty also has its own ways of predicting markets direction, and since most of the analysts had been largely bullish giving targets of the 6300 levels, the Indices and market moves have decided to prove them wrong by keeping this month largely range bound.
The technical charts have been indicating from long time a range bound momentum with conservative target of the 6118 as I have been visioning if the 6080 barrier is taken off, however the barrier has been holding on, though there was small breach on friday yet it lacked volumes and strength since the markets caved in yesterday.
For today, the markets can be expected to remain on the positive terrain, with the Indices moving towards the barrier zone of the 6080-6100 but it remains to be watched if the same would be breached with conviction.
If the same is broken then the 6118 and above that 6246 target would be valid, with the lower side of 6000-5980 which is the support or stoploss for the upmove ….
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)