SMI – Market Outlook – 19th October

Posted By : Kishore B.S

Hi Friends !!!!

Finally the markets moved up today after the initial hiccups of opening and trading in the negative to flat zone, with the start of the European session our markets too took the cue and start trading in the positive zone.
Though the positive side was traded and treaded with caution yet the rally sinced quite genuine today, due to the follow up of the Global markets which had gone up and our markets lagging behind the curve. Yesterdays rally seemed perfect to offset the lacksity in our Indices whereby they caught up with their Global Peers, where most of them are trading at their yearly and 3 yearly peaks.
The technical charts are now indicating that post yesterdays rally the Indices are placed at a very crucial point where the move above the 5720-5733 mark would clearly indicate the rally to further jeer on towards the 5800-5880 levels most likely by the expiry of this series.
But before placing the bets the charts are indicating that the closure above the mentioned levels are critical today which if not convincing enough means the rally is unnlikely to gather steam. Also it is clearly indicating that the rally would fizzle out if the Indices close below the 5660 mark today and it can easily be assumed that the series would expire at 5560 if this 5660 levels is broken.
With this in mind and focus, the trading should be set in as the direction shapes for today.

(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)

Cheers!!

Team SMI

www.stockmarketinstitute.org

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