Equities are seen rangebound on Wednesday amid mixed global cues. Even as US markets were hammered for a second straight day on renewed credit concerns, Asian markets were resilient spurred by gains in commodity stocks on the back of a rebound in oil and metal prices.
After four days of decline we are seeing a 'hammer' formation. It implies that if Tuesday's low holds then the recovery might continue; a decisive breach of it would negate the recovery. Support in declines is pegged at 4311-4284 and 4220 points while a sustained move above 4462 points could lead to further upside. Unless 4630 is not decisively crossed at close, fresh up momentum is capped.Volatility is shrinking for the past couple of sessions, be careful as it is likely to unwind,
Wednesday, August 20, 2008
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