Posted By : Kishore B.S
Hi Friends !!!!
Our markets have been largely determined by narrow range bound momentum from the last few months, and the trend has been that the markets rally after the futures expiry and then move in the range till the expiry of the expiry, this trend seems to be furthering on to current month series as well.
The momentum of our Indices during the last 3 sessions are confirming this range bound momentum and that a breakout might be imminent now that we have reached almost of the peak levels witnessed during the rally during the start of the year. The Quarterly results season are likely to kick off from next week marking the outlook for the Financial year 12-13, thereby also setting the tone for the markets trend and also the direction the indices could tread.
The charts are indicating range bound momentum with the support being the 5270 and resistance being the 5330 levels and hence it would be worth to note the range to be 5270-5330 which is of 60 points and very narrow.
This nature of narrow range suggests that it would be ideal to wait for the range to break and remain on sidelines which would be best trading strategy.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)