Support : 1600 Resistance : 1640 Bias : Downtrend
Despite the rebound, the index is still trading within the down-trending channel formed from 2 day of losses and below the 5-day and 10-day moving averages. A failure to break free from the current channel will have adverse consequences by affecting market sentiment that had begun to unravel on unfavorable developments.
Regional rebound spill over… In line with regional markets, the market rebounded sharply during the early part of the day to regain part of losses sustained earlier. Several index-linked counters bounced back from oversold positions while several lower liners also participated in the upswing momentum. The broader market was mixed as the underlying sentiment remains uncertain following the recent sell-down.
Rebound and closed near high … The index closed near its intra-day high of 1624.71 as it hold on to its opening strength Moreover, if external factors stabilizes, the prospects of further recovery are good.
by Mercury Securities