Even though the market is neutralizing its volatility the market is gaining on week on week basis. In the last week,
markets gained almost 1% over the previous week and out performers were mainly out of IT, Banks and Oil & Gas.
However, losers were PSU, INFRA, RELITY and even Metal to the some extent.
Currently, the market has retraced more than 75% of the entire fall (5310-4675), which we may say as a healthy pull back
to the previous fall. However, the market has not formed any significant bottom since 4800 levels and that may diminish
the speed of the current rally. The current on-going rally may continue up to 5165 or to 5190 levels on Monday. The level
of 5190/17350 may act as a crucial resistance as since October it acted as a major supply area for the market.
Due to quick pull back to the previous highs we feel that investors are not willing to enter into the market till it corrects
minimum 2% to 3% from here. Even break out traders are sitting aside due to narrow ranged trading of the market
between 5090 and 5150.
For the week the level of 5120/17120 may act as a crucial support level for the market and on the dismissal and sustenance
below the same may invite tired sell off. It seems that the fall will be quicker than expectations and may complete in one
or two days. Below the level 5120/17120 bears may drag the market to 5050/40 (16870) levels and if it fails to sustain
here then we may even expect fall to the level 4970/80 (16600) but that can be possible only if global cues turns weaker
than expectations.
