Posted By : Kishore B.S
The markets corrected by a whopping 140 points during the last week, after remaining in a tight range bound momentum for the last 15 days. The correction was so steep that the markets are now trading at nearly 2 month lows.
This week is important due to the impending Union Budget and the FNO expiry of the current month. Generally the markets are upbeat ahead of the Budget, but this time the expectations are low from the Budget due to the constraints that the FM is likely to face in balancing the growth and the Fiscal deficit.
The charts are indicating clear signs of oversold levels now and that a bounce in inevitable for the week, which must be used to lighten some overbought positions, and wait for the next series or the Budget to be over for clear direction for the markets.
The bounce must last to the 5900-5940 levels at the max or could touch the 6000 levels also, if there is covering of the shorts created largely during the last week. However the hurdles to watch out would be 5972-5998 which if taken off could lead the rally to the 5940-60 levels easily.
On the lower side the lows set during last week of the 5830-5800 should be watchd out for which are the pivotal support levels …..