1. Technically, it is encouraging to see how support levels have worked in the last three days. The index has been making the day’s low around the 15700 level in the last few days and finding demand. It just goes to show that the tide could be turning and the demand-supply equation could be changing.
2. The bears had all the ammunition to take the markets down big and have not been able to execute. The tight working range remains in the form of 15700-15875. A snap out either side could lead to a trending move stock.
3. On the upside, once past 15875 we are looking at a run towards 16180 levels. The pattern formed is bullish while the indicators are all looking well placed.
4. Many sectors seem to be going through a base building process stock.
5. Bank Nifty seems to have got stuck within the large range of 32500-34500.
6. The IT and Real Estate sectors seem to be preparing for an extended recovery.
7. Auto and Auto Ancillaries remain the star performers.
8. Summary View: The market continues to find support at lower levels. These are encouraging signs. Till 15700 is safe the chances of a breakout are high.
