The index opened positive and remained volatile throughout Dec 13. The local bourse posted a high of 667pts during intraday trading and a low of 1,999pts, concluding with a loss of 1,147pts to settle at 65,280pts. The volumes witnessed in the last trading session were higher than in the previous. Volatility is extremely high compared to the average volatility over the last ten trading sessions. There is a good possibility that volatility could decrease and the Index level could stabilise in the near term. The Momentum oscillator indicates that the Index is currently in an overbought condition. RSI tested a 14-period low while the Index level did not.

The chart formation depicts that the index may find initial support near 65,000. A break from the below-mentioned support can result in further weakness towards the 64,600 and 64,200pts levels. Alternatively, the index can initially face resistance near 65,500 points and then head towards 66,100 and 66,700 areas. It is recommended to trade cautiously and accumulate positions on weakness.

Courtesy – AKD Research

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