There would be a lot of choppiness in the market but holding a scrip specific view would help players deal with it safely. The indices falling down to test the supports once again cannot be denied and if this happens with the indices succeeding to move up again would improve the overall sentiment in the markets.
The sell-off which started in the mid of January 2010 finally was arrested as the indices approached the November 2009 support levels. We are entering a crucial week before the budget and therefore the supports will play an important role for the coming week. The built-up before the budget would tell us whether the budget would be appreciated by investors.
So as of now till the supports are alive, market players should avoid shorts. On weekly technical charts, the current levels where the indices have managed to take support are levels from the Neckline of the Inverted Head and Shoulder pattern. Also let’s not forget that corrections are healthy for the markets.
Technically, supports are likely at for the Sensex @ 15807 – 15651 and @ 4712 – 4675 for the Nifty. These are the levels which have helped the indices arrest the selloff. They should be watched very closely by the market players throughout the week.
On the upside Sensex would face resistance at 16522 and then at 16877. For the Nifty, it would be at 4843 – 4882 – 4951 – 5034 levels.
There would be a lot of choppiness in the market but holding a scrip specific view would help players deal with it safely. The indices falling down to test the supports once again cannot be denied and if this happens with the indices succeeding to move up again would improve the overall sentiment in the markets.
Sourfce : http://profit.ndtv.com/2010/02/15085903/Hold-a-stockspecific-view.html
Technically, supports are likely at for the Sensex @ 15807 – 15651 and @ 4712 – 4675 for the Nifty. These are the levels which have helped the indices arrest the selloff. They should be watched very closely by the market players throughout the week.
On the upside Sensex would face resistance at 16522 and then at 16877. For the Nifty, it would be at 4843 – 4882 – 4951 – 5034 levels.
There would be a lot of choppiness in the market but holding a scrip specific view would help players deal with it safely. The indices falling down to test the supports once again cannot be denied and if this happens with the indices succeeding to move up again would improve the overall sentiment in the markets.
Sourfce : http://profit.ndtv.com/2010/02/15085903/Hold-a-stockspecific-view.html
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