Posted By : Kishore B.S
Today is the FNO expiry for the current month contract, and the technical charts are indicating early signs of overbought zone on the daily charts.
Though the overbought zone indicates cautiousness especially on the FNO series expiry day, yet the same should not be considered, as accurate due to the fact that 2 of the technical indicators are still not reflecting complete overbought levels, which might get completed probably today.
The reason for this predicament, is that the Indices are just started bouncing back on the weekly charts but the Daily charts are reflecting overbought, due to this contra indicators, the result could be that the markets can remain choppy for a day or two and then some consolidation, before a direction is confirmed.
In view of this it would be best to watchout for the support of the 5800-5780 which if held means to buy on dips and a failure to crossover the 5930-5944 meaning to book profits …….
(Inputs: Basket option Research bureau – Bangalore)