Posted By : Kishore B.S
Last week had been a important and critical week for the markets both domestically and internationally, since the Indices across the global after the rought patch post the Obama re-election was put to rest and the correction that had started finally halted to bounce back.
On the domestic front too the Indian Indices bounced back from the 5540 levels after 2 days of back to back flat closing where they bounced back.
With that bounce back and the closing above the 5620 mark last week the technical charts are suggesting now that the correction that had started from the 5780 mark to the 5540 mark is slowly coming to an end, however the range bound momentum that was witnessed is continuing and would do so again.
The charts are indicating that the range bound momentum has now become much broader with the range now extending to the 5540-5730 levels which is a good 200 points range. Also the charts are indicating that though we are out of the woods for tiem being, yet since the Indices are hovering around the 5600 levels we cannot completely ignore the bears to take charge as well.
The current winter Session of the Parliament could be the main event coupled with the FNO expiry this week that would make the Indices and the markets to remain volatile till the weekend and any momentum below the 5600 mark could drag the Indices back to the 5540-5500 levels by expiry and any upmove above the 5648 mark would push the Indices to the 5690 levels by expiry.
In veiw of this it would be advised to buy on dips and sell on rallies with the above indicated levels as the benchmarks
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)