Posted By : Kishore B.S
Hi Friends !!!!
The markets made the much desired breakout on Friday treading zoom past the range of 5000-5190 to close above the 5260 mark.
After the Gap upward momentum from the start of the current week the markets have remain largely range bound again whereby the markets have been lingering in the range of 5280-5330 creating a new narrow range which could be either consolidation after the huge rally to further cause new highs or could be facing the resistance which could culminate in the range breaking on the lower side to drag the index to the 5200-5160 mark in the days to come.
The current week is very crucial since the markets are likely to consolidate ahead of the Quarterly Results season beginning from next week, when the Indian corporates will come out with their performance report and also the outlook which most of the analysts are predicting to be doom and any positive outlook by the numbers and direction could set the markets on fire again making the indices to zoom past the 5400 mark to the highs witnessed during the month of February of 5600 levels soon.
The charts are indicating that the indices are facing some resistane at current levels and the chances of consolidation or profit booking in the range of 5280-5330 could not be ruled out, thus indicating that the strategy should be to buy on dips and avoid shorting in the shortterm.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)