Pivotal rejection at 48200 +/-100 shot the bourse down harder than expected but the bottom line at 47000 +/- 300 held on and this may prove to be the new floor. All hints point towards a cycle reset which has kept the market range bound. Looking forward we maintain the stance of accumulation on the dip. Currently, the index stands at the edge of bearish territory but with significant exhaustion of deep downside. Patience and preservation will be a winner. All major support and resistance levels are marked below on the chart.
An interesting development noticed is the increased volatility after the launch of 60 & 90 days futures. This has given rise to uncertainty in the market and the effect may take few months to level off. This is only a hypothesis as there is not enough data to back the theory so one may just proceed with keen observance before weighing in an opinion. Any further development will be notified in this blog.
To better understand this post you may read the updates made in the last few weeks.
An interesting metric to observe as the index hit a new high of capitalization on the first day of the week but failed to sustain later. However, the week still closed with positive capitalization gains which may be the catalyst for the performance in the weeks ahead. Overall the outlook is neutral with wait and watch approach.
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