Posted By : Kishore B.S
Hi Friends !!!!
The markets which was eagerly awaiting for the inflation data yesterday pinning hopes that the numbers would determinate the Quantum of Rate cut by the RBI, was disappointed after the numbers came in at 7.55% much above the expectation of 7.4%, thereby dampening hopes of the market participants that the RBI would not indulge in aggressive rate cuts as expected.
The charts below however indicate that the markets are a consolidation phase and the FLAG pattern is still intact as long as the 5000 support level is not broken and not confirmed either unless the 5140 resistance level is not cut.
Today being the weekend ahead of the Monday’s Session where the RBI policy is likely to be announced is expected to be volatile with mixed sentiments and range bound trading sessions. It would be advisable to trade in small quantities within this small range of 5000-5140 with adequate stoplosses.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)