Posted By : Kishore B.S
The markets failed to give the follow up of the breakout yesterday continuing the negative trend of fridays session due to which the Indices tanked by nearly a percentage point by the EOD, however the closing a bit better thanks to the average closing. But it did give us a hint that the correction is likely to set in sooner or later.
Now when we look in to the technical charts which is the accolade or the barometer for all future transactions, then they suggest and indicate that the markets are ripe for some consolidation or correction of some 60-100 points if the Indices were to steer below the 5968 levels, due to which a retest of the 5900-5880 might be done soon.
It is also indicating to the fact that the above mentioned levels would not be reached in case the 5930 levels on the higher side is broken post which the Indices would rally to the pivotal level zone of the 6080 which is the first resistance and target level of the breakout above the 5860 levels.
Given this facts and that the IIP data would be released on 11th which is this week followed by the INFY results too, the markets will remain volatile and a breakout looks imminent where the target of the 6080 and 6240 could be made or the breakdown below the 5880 would signal the target levels of the 5700-5550.
All said and done it is for the markets and the Indices to decide the fact as to the future direction of the markets and based on the above said parameters the positions can be initiated accordingly ….