The markets began the week on a dismal note thanks to the Goldman crisis that unfolded over the weekend. The Sensex easily achieved its fibonacci based target of 17,300, before bouncing back marginally and settling at 17,401 - down 190 points.
The index has given a sell signal on the weekly charts, and longer it remains below 17,415 the index is likely to slide to lower levels this week. However, as and when the index stabilizes over the 17,415 level then we can see a pull back up to 17,600 at least.
The NSE Nifty yesterday moved in a range of 118 points, from a high of 5,279 the index tumbled to a low of 5,161. The Nifty finally settled with a loss of 59 points at 5,204.
Yesterday’s low is very crucial for the market going forward. If the Nifty is able to hold it for the next couple of days, then we could see resumption of the recent up move.
Today, the index is likely to seek support around 5,160-5,145-5,130, while face resistance around 5,250-5,260-5,277.
With RBI scheduled to announce its monetary policy for FY11 tomorrow. And given the fact that the world markets are grappling with another crisis - Goldman Sachs. It is quite prudent to say that we can expect a volatile session today.
