Yesterday the markets remained largely on a lackluster note, since the Indices remained positive by smaller percentage points though the initial reports of the SGX and global cues were indicating larger positive levels.
As Indicated in yesterdays blog of an impending correction or profit booking to the 5900 levels for the time being is still a strategy that is probable to happen and this correction to the 5900 levels in the days ahead could be used to initiate some longs for the target levels of the 6200 in the next fortnight. It is however very crucial here to note that the prediction of the 6200 is valid as long as the 5880 support zone is held in the short term.
On the lighter vein if the 5880 levels are shrugged off and the Indices fall further down then the probability of the 5700 levels would be opened and those who have initiated positions should exit their longs and wait for the 5700 levels or can short with minor stoploss of the 5916 levels.
The charts are Indicating that the above mentioned strategies would be the ideal ones that could be followed especially to buy on dips strategy with stoploss of 5880 give or take 10-15 points for probable target of the 6200 levels with minor hurdle at the 6080 zone.
Since today is a weekend and the corporate results would start trickling in from next week, it would be pivotal to watch out their performance as well to get an insight into the direction of the markets for the above mentioned levels to happen…..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)