Posted By : Kishore B.S
After the spectacular rally on Tuesday’s session, the markets followed up the bullish rally on the Wednesday’s session too, thereby giving the much needed relief rally an opportunity to prove, that the technical bounce back due to the oversold positions was due for long time now.
Though the markets opened with some Gap today, yet the positive momentum seemed to be lacking the spirit today of continuing further, since the markets were faltering at the pivotal resistance level of the 5840-60 by not even daring to touch that mark fail crossing it.
The technical charts at this juncture are indicating that the markets might have completed some sort of the bounce back that the participants were expecting and that the Indices would halt or consolidation now, for the future directional move, which could on either side of the bullish or bearish side.
Also that the Budget failed to impress the markets or the failing Economic growth from boosting them, is another shot in the arm for the Indices, and this is getting reflected in the charts as well, which are clearly pointing out that if the Indices crossover the 5860 mark successfully tomorrow then we would easily reach the 5940 levels, thereby covering the Gap created during the slaughtering of the Indices last month, and if the Indices fail to hold the threshold support level of the 5730 then new lows below the 5630 levels at the 5480 levels cannot be ruled for the month …….
In this view, it would be ideal to wait for the crossover of the 5860 to take further longs, or the directional move and then flow accordingly ……………
(Inputs: Basket option Research bureau – Bangalore)