Posted By : Kishore B.S
The whole of this week the markets could be said to have remained in the range bound direction with the Indices hovering in the range of 5540-5630 which is a narrow 90 point range.
Last week I had reitereated the point that if the weekly closing is lower than the 5626 mark then we could see further sell off to the 5540-5440 mark in the days to come. However the positive side is that the markets bounced back from the initial support level of the 5540 levels.
And now this being the second week the closing of today will be significant ahead of the expiry next week since a closure below the 5600 today would be the clear indication that the correction is likely to continue further and that this week was just another round of consolidation.
The technical charts are indicating the above said parameters where they are clearly indicating and pointing out the fact that today if the Indices close above the 5640 then the rally would continue futher to the 5688-5730 levels by expiry and if the closure is below the 5600 levels then the indices would tread down to the first support zone of the 5540 levels and further could drift to the 5522 mark by expiry…..
With this in mind it would be advisable to trade the path according to the direction the markets moves by the second half of the sessions for the next week market …..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)