Posted By : Kishore B.S
After the tepid January month, and the series expiry which was largely range bound with the Indices and the markets moving in quite a narrow range of around 100 points between the 6000-6100 the markets have displayed a phase of consolidation as envisaged.
This consolidation in ranges which are narrow are actually good for the Indices which have galloped by nearly 22% in the last 8 months, this kind of consolidation is healthy since they induce strenght and create liquidity amongst the market and participants feel safe and secure to increase their investments.
The charts are indicating that this consolidation phase is likely to continue for some more time now, with the Indices likely to create some more bigger range with the large frame work which has downside support of the 5908 levels and resistance at the 6118 levels, which will get broken soon, once the Nifty finishes the consolidation phase.
With this in mind, the participants can start creating longs with stoploss of the 5900 levels on every dip with likely target of the 6240 by the end of this month or March.
The reason seems to be quite evident, which is the BUDGET which is to be tabled at the end of the current month, where lot of measure to stem up the Economy and Industries are likely to be announced coupled with measures to cut the Budgetary and Fiscal deficit ……………………
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)