The Markets Opened on a negative note today with a huge GAP down largely affected by the Negative US, EURO and Heavily downtrending Asian markets. However it was worthwhile to note that though the Gap down opening was significant yet there was no fresh selling or drift happening reflecting that some recovery was in the offing.
But the recovery did not fructify unless the SBI results were out and backed the Nifty and Bank Nifty to retrace the negative sentiments to some shades of Positiveness which started happenings though reluctant yet on a strong note.
The recovery led to some buying in selective counters especially the Large caps which predominant moved the Index on a stronger footing to recover all of the losses by the end of Noon session and also post some gains indicating that the recovery could surge over to the next trading session since it was near and above the 4900 mark.
With this recovery it cannot be ruled out that we would recover the 5000 mark covering the GAP down made during the last trading sessions but after that the Upmove might be muted or lack confidence without any positive triggers which for the time being seem unlikely and hence the recovery could be termed as pull back or death cat bounce and a move only above the 5000 mark would wade the waters clear for bulls to invade the bears completely to 5200 and 5400 levels.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)