The trading strategy in the short term would be to book profits at higher levels and buy the falls at the support levels strictly with a trading perspective.

After correcting by 700 odd points, the Sensex has once again bounced back to recover most of the recent losses. During the past fortnight, our markets seemed to have broken the trend of strictly duplicating the movements of other global markets. In fact, on a day to day basis we actually performed in exactly the opposite manner to the American and European bourses, which in a way is good news for traders as they can now take overnight positions without having to worry as to how global markets will close when we are not open for trading. The Indian markets are now moving/reacting more too domestic factors/developments.

The Indices are once again approaching the crucial resistance range of 14500 to 14800 (Sensex) and 4275 to 4390 (Nifty). Thus one should use these ranges to book profits with a view to buy again on declines.

On the upside the targets for the Sensex are placed at 14508-14644-4764-15100. For the Nifty these targets are at 4272-4301-4333-4352-4390.

On the down side the supports for the Sensex are placed at 14326-14181-13985-13779. For the Nifty these targets are at 4210-4168-4078-4055.

The trading strategy in the short term would be to book profits at higher levels and buy the falls at the support levels strictly with a trading perspective.