Posted By : Kishore B.S
Finally yesterday the Indices managed to close near the target level of the 5900 after the much hoopla and volatility. Indeed its a feat that needs to be appreciated since the Indices managed to hop up nearly 6% from the 5600 levels to reach the 5900 level which is a cool 300 point rally in just 10 sessions.
As reiterated during my update yesterday the markets now have reached some point of reflection zone since the 5900 levels has not been breached and a correction or consolidation is all that is needed now if the Indices have to survive and inch up to the 5990-6040 levels now.
The technical charts are reflecting this fact with the caution that if the 5800-5760 levels is breached on the lower side then we could rally down to the 5500 levels in the days to come. However given the strong rally that we have witnessed and the charts this seems just a caution and signals to us that this is just a caution to bear in mind.
Since this rally was enigmatic and not participative by many across the segment a correction would be infact meaningful to all out there to go and buy on dips, with stoploss of the 5600 levels and target of the 6040-6180 levels in the days to come.
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)