Posted By : Kishore B.S
The markets remained largely bearish during the whole of last week, especially the week which was eclipsed by both the Budget and FNO expiry. Technically though the Indices were oversold to a great extent, yet the Budget failed to enthuse the markets due to which the markets made another bearish fall on the Thursdays session where the critical support level of the 5650 was reached without any support emerging till that level from 5800 levels.
Now that the 5650 levels has been reached, the charts are yet again indicating oversold levels, and hence this week there could be some bounce back of the fall witnessed during the month of February which was 10% from the 6100 to the 5650 levels, and this bounce could be the 5780 on the max.
At this critical juncture it would be right to note that the bounce back should be watch with caution, since the failure of the Indices to cross the 5720 mark could lead to further sell off again, to the levels of the 5480 easily, especially due to the some of the PSBs which have not yet completed their correction.
However the oversold Private Banking, OMC and Metals stocks could surprise the markets and help the bulls to emerge victorious for the week at least and hence it would be advisable to watchout for the trend that would emerge out on the Mondays trading session, to take the adequate positions for the week, since a bounce back to the 5800 looks possible unless the 5630 levels are broken…………….
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)