Posted By : Kishore B.S
The markets remained highly negative last week, especially due to the political scare of the ruling UPA being reduced to just a majority due to the withdrawal of the DMK from the Govt.
This caused the Indian indices to tank by nearly 3-4% when the Global markets were rallying or trading near their 4-5 years highs. This week due to the FNO expiry and the positive news that has emanated from Euro and that too Cyprus of the avertment of an impending default by that country has been solved.
The technical charts at current levels suggest that untill the 5630-5600 is held the markets have the possibility of moving up to the 5740-5800 levels due to the oversold levels and if the 5600 is breached the markets could slide all the way down to the 5540 levels which is the pivotal point for the bulls to watch out for which if failed could lead to overall sell off further to the levels of the 5230 levels in the days to come.
Since the oversold zone are prevalent a bounce would be most idealistic to the 5740-5800 levels and it would be in the best interest to buy in small quantities at current levels with stoploss of the 5600-5540 ……
(Inputs: Basket option Research bureau – Bangalore)