The markets bounced quite nicely and also the market breadth was in favor of the advances. Although after the budget we have seen a general sell-off in the market, key indices were oversold and nearing support zones. Will this bounce last? Let's discuss them from a more technical perspective.
- Resistance seen at 11,620 zones.
- Markets expected to trade in the band between 11,400 and 11,600 in the immediate future.
- Any decisive break of these levels will set the markets up for a move in that direction.
- Gap support holding up
- The oscillators are not oversold yet which points to the selling pressure as not being that strong.
- The advance decline ratio was in the favor of advances albeit only just. This points to the market breadth also improving along with the bounce we saw today in the indices
- As can be seen on the charts the 18,000 is where the massive resistance lies. If we are able to cross that perhaps we will see the beginning of atleast an intermediate term bull market.
- Stock breaking out from an inside bar pattern
- 225 levels acting as a very strong support
- 245 levels still open
- Stock consolidating after the piercing line candle-stick pattern.
- Since the stock is in a downtrend have to be careful with the longs.
- Any break below the low of the piercing line will call for a technical exit.