The week past and expected
Even though there was sell off in the market on last Monday the market remained in a recovery mode through out the
week. However, such recoveries are nothing but pull back to the bear rally between 5400 and 5160 levels. The medium
term trend of the market is "down to negative" and may reverse only if the market dismisses the previous highest level
5400/18050.
As per weekly pattern last week's highest and lowest levels may act as a prudent support and resistance for the market
(5335/17780 and 5160/17270). For traders these levels are important to note as on the sustenance of the market above
and below these levels may move the market sharply towards the same direction. On the higher side we may expect 5400/
5440 (18150) above 5335 and on the lower side the chances of hitting 5000/16850 may increase below the level 5160/
17270
For the day 5265/17530 may act as a major support any sustenance below the same may push the indices to multi support
area 5200/5180 (17390/17330). On the higher side 5310/5335 levels may act as a hurdle area to cross these levels the
market requires genuine strength index based stocks.
In the last week there was "out performance from banking side" and "under performance from metal side". In the current
week also we may expect the same and buying on declines is advisable in bank stocks where as selling is advisable on
rally in metal stocks. The auto and tech index may improve from lower levels. The capital good and infra stocks are still
into bullish consolidation zone and buying at proper support levels will yield better returns for investors in the medium
