Posted By : Kishore B.S
Hi Friends !!!!
Our markets remained largely undirectional yesterday swinging on both the sides of the equilibrium of negative and positive zones.
Though the upmove during the last hour of the trading sessions suggested that the upmove could start anytime yet it lacked the conviction to hold and prove that the rally would sustain for long.
The uncertainity can be largely attributed to the technical parameters where the GAP still remains uncovered due to which the rally is taking off with the required momentum since this gap could be the reason for the next leg of correction to the 5100 levels if warranted due to the Logjam in the parliament and the ECB scheduled for tomorrow.
The technical charts as stated are still in the sell zone indicating that the correction is still very much ON and unlikely to end unless the 5300 levels is breached on the higher side. Though there was hope that the Banking sector would start its relief rally to pull of the indices yet the same seems to be fading off late.
Due to this uncertainity prevailing in the markets it would be advisable to make some long positions on dips near the 5240-5220 levels with stoploss of 5180 levels and any downmove below that could be used to create further positions as deemed necessary.