SMI – 5th February 2013 – Market View

Posted By : Kishore B.S

Hi friends,

Yesterday the Indian Indices remained largely negative inspite of the positive opening and positive Global cues, where the Dow Jones Index closed above the 14000 psychological mark.
Though that seemed a positive breakthrough for the bulls to roar, yet the Indian indices failed to take off and the positive sentiments were crushed after the first two hours of the trading session, the reason could be attributed to the technical charts which have been indicating a range-bound momentum for the Indices with the support setting in at the 5980 which was on the verge of being broken down yesterday but the closure was above that.
For the day the charts have been indicating that the first support would be the 5940-5900 levels which if broken would lead the indices down the 5800 where good support is likely to ensue, on the higher side now the resistance is the 6028-6052 levels which needs to be convincingly corssed for the bulls to rule supreme.
Given the sentiments and the chart pattern a breakdown to the 5900 levels cannot be ruled out for the time being and on needs to watch out if that holds before entering into new trades ……………

(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)

Cheers!!

Team SMI

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