Posted By : Kishore B.S
After the rally that thrust the markets above the 5850 levels the markets have been largely range bound and volatile to move forward where the Indices have failed for the last two days to cross and close above the 5900 levels.
There has been strong selling being witnessed on every upmove now, which is largely profit booking or consolidation after the staggering rally from the 5600 to the 5880 levles in the last week. This upmove put the speculation of the bears to take the markets and Indices down to rest and the strong covering helped the Indices thread higher to the 5900 levels.
However if the charts are to go by technically they are Indicating some early signs of tiredness and that the consolidation or profit booking phase would be the best available direction for the Indices now. Since the upwards move has been quite quick and fast hence the technical charts are Indicating and pointing out that the markets could retest the 5760-5790 mark sooner or later.
If that happens and if the above mentioned levels are sustained then the markets could inch further high to the 6000-6092 levels soon by the month end. On the flip side if the 5760 levels are broken then we would slide back to the 5540 levels by the month end. Going by the markets mood and charts the upside seems most promising with likely target of the 6000-6112 levels in the days to come but markets always are surprising and hence cautiousness should never be ignored……..
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)