Posted By : Kishore B.S
Hi Friends !!!!!
The markets opened with a positive GAP yesterday and after the initial hiccups sustained to the positive sentiments and move for the entire session yesterday. Yesterdays ferocious bullish upmove has come in as a surprise to many of the Analysts who were extremely cautious and predicting doomsday with targets of 4500 on the Nifty.
But the charts had otherways to predict that the Indices had strong support base at the 4760-4800 levels which until broken would not confirm the doomsday prediction. And true to the charts the indices failed to break the support zone and the bounce back from those levels had clearly indicated the rally to 5000 levels soon, which was easily achieved during yesterdays trading session.
Now that we the indices have achieved that mark of 5000 the next major resistance lies at the 5018-5036 levels which until crossed could pose those threat to the surging bulls and some profit booking cannot be ruled out. If the hurdle of 5036 is broken and sustained then the rally could easily reach the next target zone of 5078 levels which is the 50% retracement of the FIBONACCI.
On the lower levels the support now stands at the critical level of 4940 which hopefully should hold unless drastic negative newsflow weighs heavily.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)