Posted By : Kishore B.S
The markets rallied for the third consecutive day yesterday, though it lacked the volumes and the conviction of a bullish rally, yet the rally for enough to justify the oversold levels, that the oversold pattern in the Indices has been covered to some extent.
But the failure of the Indices to zoom past the 5780 mark after crossing over the 5750 levels yesterday is a worrisome factor for today, since the failure yesterday could result in some profit booking or consolidation due to the rally of the nearly 130 points in the last three sessions.
The Indices are technically sounding out that the Indices need to hold to the 5708-5726 levels for today and crossover the 5760 levels for some good rally towards the first target of the 5820-5860 levels and the bulls can hold and add to their longs with conservative stoploss at the 5680 levels for the time being.
(Inputs: Basket option Research bureau – Bangalore)