The FNO contracts are set to expire tomorrow, and after the RBI repo cut of 25 bps inline with the markets expectations the Indices tanked after crossing the 6100 levels but unable to crossover the 6118 level.
In view of this observation as per the charts 6118 is the level to watch out for which is likely to be the resistance level a crossover of which would mark bullish for the current month and feb series, and the 6000 mark is set as the lower support zone, where buying can be initiated on dips.
Since the contracts are set to expire tomorrow, and going by the sheer dynamism of the markets, Jan which has been the bullish month this year has turned out to be the one of the most volatile months, though Infy and RIL gave thumping results coupled with lot of other frontline stocks, yet the Indices have failed to crossover the 6100 levels on a convincing level.
For the markets to recover and bounce, SBIN, RIL and other Pvt sectors coupled with metals need to perform so that the 6100-6118 levels is breached, and till then, it would be best to remain on sidelines with cash …….
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)