Posted By : Kishore B.S
After the long spell of correction and downward slide in the Indices finally the Indian Indices rallied yesterday by a whoppy 1.5%, though the rally was long due especially post budget due to the inherent oversold zone of the Indices yet the same had failed for quite a long time.
Now the charts after yesterdays rally are indicating that the bounce back yesterday might not just be another miracle and that is likely to continue for another session or two before the bears are likely to come back.
However it would be important to note at current levels as to the extent of the bounce back or rally that is likely to happen today, and if the 5840 levels would be reached and taken off, for the downward trend to be mitigated and the bullish trend to emerge again.
if the 5840 levels are taken off on the higher side than the bullish trend is likely to emerge again with target of the 6100 mark, and if the markets tank failing to cross the 5840-60 levels than we could be back to the 5600-5480 levels soon … and it would be best to take positions based on these parameters……
(Inputs: Basket option Research bureau – Bangalore)