Expect Correction in markets - Angel Broking

The week started on a positive note but indices faced tremendous resistance near the mentioned 'Upward Sloping Trend Line' (drawn by joining the highs of October 5, 2012 and December 11, 2012).

Enhanced selling pressure in the latter half of the session led indices to close in the negative territory. The daily chart now depicts a 'Bearish Engulfing' pattern as yesterday's real body has completely engulfed Friday's as well as Thursday's candle. This is also supported by the negative placement of the 'RSI' and 'Stochastic' oscillators.

Hence, going forward, any sustainable move below yesterday's low of 19654 / 5977 may trigger near term pessimism in the market. In this scenario, we can expect a correction towards 19624 - 19509 / 5960 – 5935 levels. On the flipside, 19857 / 6042 would now act a resistance in coming trading session.

Source : Equity Bulls

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