Posted By : Kishore B.S
Yesterday turned out to be a fantastic day for the raging bulls since they not only held and crossed over the 5790 mark but also gave the signal that 5900-6000 is not far off.
The FNO expiry can also be said to be one of the contributors to the surge in Indices since most of the Participants had not geared up for the rally during the last 3 days of the series expiry, where the indices rallied by a staggering 5%.
This rally not only triggered most of the stoplosses around the 5760-90 mark but also led to creation of further longs with probable target of 6000 mark now. This level has comein due to the technical chart Indicators which have clearly pointing out that above the 5800 level for 2 sessions would give the conservative target of 6000 levels before some correction or consolidation could set in, also supporting this chart are the Banknifty and more appropriately the PSU banking stocks which are Indicating that they would tread further higher since they have not participated in the current rally.
Due to this picture there is not an iota of doubt that the Indices would not zoom further, and currently the ideal strategy would be to buy on dips with stoploss of 5730 for target of 5890-5942-6000
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)