Posted By : Kishore B.S
Finally after the much dilly dallying and drama the markets and indices broke out above the 5730 mark to close near the 5760, however the point to note was that the Indices failed to close or cross the next resistance zone of 5788.
The positive news crept in due the OBAMA effect, due to which the indices rallied a decent 60+ points from the flat levels, and this rally was significant since the rally came nearly 6 weeks after the CHIDU effect due to which the markets rallied nearly 500 points and now were badly bruised awaiting for the OBAMA or ROMNEY effect to take place.
And finally the effect occured making the indices zoom past the 5730-5740 levels and now the charts are indicating that the rally if it has to sustain and further move up then the indices should hold to the fort of the 5722-30 levels for atleast till week so that the real upmove can be seen during the next week towards the target level of 5900.
On the other hand if the Indices fail to hold the fort of 5722 and close below the 5700 mark then it would be a clear indication that we could head further on the lower side towards the 5560 levels in the days to come and it would be wiser to remain on cash.
With this message clear and sound it would be good to start buying stocks with likely stoploss of the 5688 levels for target of the 5900 zone for the time being ……