Markets Likely To Remain Flattish In Truncated Trading Week

How quickly market sentiments can turn! A sudden inflow of positive news flows triggered the expected bounce off the strong support of 10K that was predicted over the past couple of weeks. Brent was down nearly 4%, the INR rose against the USD, there was positive news on the Iran sanctions, GST collections crossed Rs. 1 Lakh Crore, and India completed a meaty currency swap with Japan to the tune of $ 75 Billion. All in the course of a week.

The index, having risen on Monday, sent into a shell for a couple of trading sessions before registering a spectacular surge in Friday, gaining more than 300 points intra-week.

Though the momentum on the weekly charts remains firmly oversold, we’re likely to have a flattish consolidation in this truncated trading week that comprises just three trading sessions.

Minor headwinds are anticipated around the 10,550- 10,600 mark, at which stage we may see the index retracing by 100-150 points before resuming its upward trajectory towards the 11,000 mark. 

The broader trend remains range bound, as suggested by the fact that the market neither decisively broke down below the 10K mark (it’s March wave low) nor bounced off from a level that was significantly higher than that.

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