Posted By : Kishore B.S
The Indian indices showed some strenght yesterday though it lacked the vigour and agility that was expected after the superb upmove on last thursday and the follow up that was predicated.
The reason for the failure of the upmove that was made during the opening was the lower than expected manufacturing data for the month of March, which is indicating that the Economy is faltering seriously and that concern needs to be addressed on an immediate basis, by sops and cutting of interest rates to fund the businesses.
However the Govt has failed to arrest the Inflation from the supply side majorly due to the support prices on various Agricultural produce that have been the cause for the headwind inflation.
The technical charts are indicating at current levels that the failure of the Indices to crossover the 5720-5750 pivotal resistance levels is an indication that all is still not well for the bulls to cheer and they can rest in assurance as long as the 5650-5600 is strongly held and failing which the bears would emerge again to push the indices to the 5400-5200 zone again.
However the saving grace on the charts is that the Indices are still oversold due to which major downfall might not been seen, for the next 2-3 sessions, however volatility with small trading range might be the order unless the 5750 is strongly breached on the higher side or the 5650 is breached on the lower side.
(Inputs: Basket option Research bureau – Bangalore)