Posted By : Kishore B.S
Yesterday the expiry session was quite interesting and given the fact that volatility should have been the highly expected ingredient, was sufficiently mixed with it. For most part of the session the Indices were largely in range of just 20 points.
This 20 points range was between 5906-5920 till the last half an hour of the session, post which the real colours of the Indices emerged with the tanking of the Indices by more than a half percentage, to retrace back all the gains posted during the wednesdays session getting retraced.
With this retracement, the dilemna amongst the participants was clearly brought out, that the Indices could tread either higher or lower depending on the outcome of the impending verdict on the US fiscal cliff this weekend and any closure below yesterday low today should be cheered by the bears and closure above the 5918 levels today would clearly indicate the bulls gearing up next week and the start of the next year towards new highs.
If the Indices were to close below yesterdays low near the 5840 mark then the retracement of the Indices back to the 5700 cannot be ruled out next week. With this in focus and cue of the direction, the strategy should be implemented by the end of th day and till then it would be worthwhile to watch the high drama……
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)