Posted By : Kishore B.S
Our Indian Indices gave way on Friday thereby becoming the worst performing index in the global space, tanking by nearly 1.5% by the end of session, though most of its global peers were just a 1% down.
The sell off an be seen in two contexts now that we are on the higher side of the Indices, first the breakdown of the trading range of 5824-5948 if the Indices were to close below the 5840 levels today ahead of the expiry on thursday and early indicator of the impending correction.
On the other hand a rally today above the 5890 levels could signal that the things are still under the bulls control and that we could witness 5930-40 by the expiry if not more. Given the global sentiments this scenario might not happen yet there is no harm in visualising the same.
The charts are indicating that todays closure would be critical and needs to be watched with caution for the direction of the markets since the above mentioned breakthroughs might be confirmed. And in light of this predicament it would be advisable to be light on positions and sit on cash as has been advisable for the last few days……
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)