Support zone the key to protect slide: Vasudeo

Technical Analyst, Hitendra Vasudeo:

The Indian stock market will have to hold its breath as it will have to go through two nights of global markets. A significant fall or rise in the next two trading days in global markets could affect and impact the market strongly.

Last week being just 3 days trading, it opened at 17429.96, attained a high at 17664.10 and fell to a low of 17382.38 before it finally closed the week at 17486.02 and thereby showed a net rise of 81 points on a week to week basis.

The Sensex has a shadow in the higher range, which may offer resistance henceforth. Resistance will be at 17664-17687-17772. Support will be at 17136-17008-16920. Volatility between 17772 and 16920 is likely to be seen.

The retracement levels of 16828 and 16453 may be under pressure. Which of these levels will work as a support for a bounce cannot be defined currently. When these levels arrive during market time, we need to check if any recovery or bounce is seen from either of the support level mentioned. Nothing much has changed in relation to the previous week and the support henceforth. The support zone is still the key for any possible rise from the support zone.

The week closed with ambiguity and much depends on global markets weekly closing of Dow Jones Industrial Average (DJIA) and Financial Times Stock Exchange (FTSE).

Support for DJIA is at 13000 and as we write the current update at 8.47 pm (IST), DJIA is at 13038. If Thursday