Posted By : Kishore B.S
After the BIG spike in the indices over the weekend on Friday and extended session of Saturday, yesterday the markets took some breather. This breather after the huge surge is not unusual and can be termed as some profit booking or consolidation phase.
Though not much has changed in the domestic arena yet the Global news put forth the spike for our markets due to which the Indices managed to cross the 5300 mark successfully. And now with the Indices hovering around the 5350 mark which is viewed as the critical support and resistance level on the eventually of the event should be keenly watched out for.
The technical charts are indicating that the correction that had set in during the last week is over and we could be in the consolidation phase for the next 1-2 sessions post which there could be a breakout on the direction of the next move which would be 5280 on the lower side for further downside and 5380 on the higher side.
Given the backdrop of the global and domestic events along with the charts the downside seems unlikely to happen but the bullish breakout could be sure.
Hence the charts are pointing out towards some buying on dips during this consolidation phase with likely stoploss of 5280-50 on the spot for conservative targets of 5400-5480 in the days to come.
(Inputs: Mr. Hemanth.V, Faculty TA – Stock Market Institute, Bangalore)