The market opened down with a gap on the back of weak global cues but instead of falling further, it has managed
to bounce back in the later part of the day. Even though the attempt of bouncing failed to reach 5230 levels the
market has managed to close above 5180, which is an equilibrium level for the market since October 2009. The market
has spent maximum time between the range of 5180 and 4950 even though it has broken the range on the either
side in the month January, February and March. In case the market sustains below the level of 5180, then the market
may again fall to 4950 levels.
Today, in case the market recovers in the fist half, then we may expect the market to reach 5240 or 5250 but sustenance
above it requires a strong positive announcement (from the RBI Policy) or positive world cues. In the absence of
the same, the market may remain weak and may turn southward towards the major support of 5120/5130 level.
Any daily close below the level of 5120 may lead to further weakness to the level of 5070 or 5050. Our advice is same
of reducing trading long positions and for investors advice is to accumulate frontline stocks around major supports
(5120/5050/4950)
