Markets to take time, consolidate around current levels
Wednesday, 10 March 2010
MUMBAI, Mar 9 (Economic Times): After a lacklustre performance by the markets in January, the month of February was marked by volatility. The Union Budget brought out the much needed relief for the markets with the sentiment turning positive on the last day of the month.
The March series opened at 386 billion as against 428 billion last month, wherein the Nifty future was 119 billion and Stock futures were 266 billion. The rollovers to the March series were comparatively low as market players were skeptical on the budget front.
The sentiments were very down but technically market were still holding strong above their important support level. The markets reacted positively to the Union Budget delivered and gave a spectacular breakout from the consolidation that took place since a long time.
Nifty has given a symmetrical breakout on 26 Feb above the 4,910 level and this breakout gives an ultimate target of 5,200 - 5,330 in the coming days.
Giving a technical call on the road ahead for the markets in March, brokerage firm Nirmal Bang Securities said, "Currently Nifty has rallied almost 230 points or 4.8 per cent from its low of 4,958 and has reached the 61.8 per cent retracement level of 5,070 which is from the top of 5,310 to the low of 4,675.
Now this 5,070 happens to be an important point from where markets could give a fresh breakout on the higher side. We believe that this 230 point rally took place in a very short period of time. Going forward, we feel that markets will take time and consolidate around this level and look for a fresh trigger to drift the market high from these levels."
According to the brokerage firm, Nifty is well placed above its 50-day moving average of 5,015 and support for the market in March series is placed at 4,960 / 4,880 and resistance at 5,120.
The March series opened at 386 billion as against 428 billion last month, wherein the Nifty future was 119 billion and Stock futures were 266 billion. The rollovers to the March series were comparatively low as market players were skeptical on the budget front.
The sentiments were very down but technically market were still holding strong above their important support level. The markets reacted positively to the Union Budget delivered and gave a spectacular breakout from the consolidation that took place since a long time.
Nifty has given a symmetrical breakout on 26 Feb above the 4,910 level and this breakout gives an ultimate target of 5,200 - 5,330 in the coming days.
Giving a technical call on the road ahead for the markets in March, brokerage firm Nirmal Bang Securities said, "Currently Nifty has rallied almost 230 points or 4.8 per cent from its low of 4,958 and has reached the 61.8 per cent retracement level of 5,070 which is from the top of 5,310 to the low of 4,675.
Now this 5,070 happens to be an important point from where markets could give a fresh breakout on the higher side. We believe that this 230 point rally took place in a very short period of time. Going forward, we feel that markets will take time and consolidate around this level and look for a fresh trigger to drift the market high from these levels."
According to the brokerage firm, Nifty is well placed above its 50-day moving average of 5,015 and support for the market in March series is placed at 4,960 / 4,880 and resistance at 5,120.