Posted By : Kishore B.S
Hi Friends !!!!
Our markets finally succumbed to the selling pressure after the much anticipation and expectation of the correction remaining incomplete to cover the GAP of 5220 yesterday.
The selling pressure was widespread and across the sector where most of the stocks declined especially to note being banking, auto, metals which took the indices to lows of nearly 5215 where the support emerged finally.
Most of stocks are currently trading at levels of 2-3 years low now, except the fact that the indices are trading at higher levels due to rise of the IT and FMCG pack which are holding the Index or else the same would have been trading below the 5000 levels given the prices of these sectors.
Today is an important event day with the Global eyes on ECB waiting eagerly to know the next course of action it would take to keep the Euro afloat and the Economy ticking towards growth.
The technical charts are indicating that the Indices are oversold at current levels but the underlying fact is that there is still some more scope for further downside to the 5150-5100 levels if the key pivotal support levels witnessed yesterday that is 5215-5200 is broken.
On the higher side if the Indices manage to crossover the 5280-5300 levels the trend would reverse to the bull side with targets of 5400-5480 in the days to come.
Today as said is the most awaited day and hence huge swings cannot be ruled out which can be utilised for good trading opportunities.