Posted By : Kishore B.S
The Markets moved in tandem with the view today hovering in the Positive Zone and closing near the immediate Resistance zone of 5250 levels. Though the Indices did attempt to move above the Resistance level of 5250 towards the next major level of 5280 it faltered at the 5262 mark and retraced to 5222 levels and didn’t break the support level of 5220.
With todays closure near the Resistance level inspite of the Holiday tomorrow, it could be a hint of an early Rally, the confirmation of which would be a successful closure above the 5308 levels. Given the market momentum for the entire last month series though the upmove seems remote yet it cannot be completely ruled out if the Dow futures hold on to the 13100 mark and rally further.
The follow up of the Results season too can throw up some surprises which could trigger the markets to rally up further, if not much Negative Sentiments from the Policy makers and European markets creep in. Todays positive closure when the Euro and US futures are trading negative also seems to be relief after we decoupled from the Global market sentiments also for the last week.
All said and done as stated it remains to be watched for the confirmatory signs of the course of Direction since we are back into the Trading range of 5170-5330 again and lets hope that this time the breakout would be real and true ………..
(Inputs: Mr. Hemanth V, Faculty TA, Stock Market Institute, Bangalore)