Posted By : Kishore B.S
Hi Friends !!!!!!!!!
The markets surprised everybody yesterday by its bounce back after its weak opening amidst rumours of deepening bearish patterns. The Nifty opened near the support zone of 5000 and respected the support by not infringing below that.
The bounce also was spectacular inspite of the weak IIP numbers which were below the market expectation and that was the surprise factor. The bounce could be largely credited with the IIP numbers since the weak IIP has strongly influenced the minds of the market participants with a larger CRR cut and RBI easing its policy during the meet on 18th of this month.
Speculations among the Global participants also with regard to further Monetary Easing Measures to support the Global Economy from further stress also led to strong positive sentiments after the opening of the Euro Markets.
The charts below are indicating a FLAG pattern in the making after the move for the last few trading sessions and the pattern would be confirmed if the Indices were to break out above the resistance level of 5130 strongly giving likely target of 5340 levels in the days to come. However the pattern would be negated if the Indices were to crash and close below the 5000 mark.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)