Posted By : Kishore B.S
The markets rallied yet again during the second half of the Thursday’s trading session, after the volatile swings of the markets which was mixed of the negative and both the positive sentiments.
With this rally during the last two hours of the session, the Indices made smart move of closing above the pivotal resistance level of the 5860 and now the next important crossover should be the 5888 mark.
The 5888 mark is important technically since the charts are pointing out that the Indices above this levels could head further north to the 5940 levels thereby closing the GAP as pointed out during the outlook on 7th of March successfully. And the charts are also pointing out that if the rally is accompanied then the bears should be out of the markets soon as well.
As the bulls got scared off during the month of the February which was marred with the slow drift without any upside and continous slide for 26 sessions at a stretch, the current rally of the last 2 days and probably on Fridays session also would technically indicate on the Day and weekly charts that the mild correction in the Uptrend towards the journey of 6300 levels would be over and that we should head higher now with the closing of today which is the 5860 mark as the support levels.
But for the rally to the 6300 the Indices should crossover the 5888 hurdle and close near the 5940 mark, and then only the above prediction would be valid, and if the Indices fail to do that and slides below the 5800 levels on the Fridays session, then the rally witnessed for the last 2 days should be treated as just a Dead Cat bounce, and the correction would again start again with the 5630 levels as the first target and 5480 as the second levels.
But the technical charts are Indicating that the Trend might be on the verge of the Bullish with the 6300 levels as Target due to the Global positive cues and this should be the sign that needs to be watched coupled with closure on Friday as to whether its above the 5888 levels or not to favour either the bulls or bears ………………….
(Inputs: Basket option Research bureau – Bangalore)