Market Outlook for the last week of March 2012

Markets were extremely volatile last week due to a series of high voltage events took place in the week previous to it. Budget, UP elections and credit policy. Markets were trading between 5200-5400 and have shown significant weakness. The 200 DMA is at 5163. The Market is still in the long term bull phase. The Golden cross formed on 13th march confirms this.

This week markets may fall further and can test 5066, which is the bottom support in bollinger bands weekly chart for 10,2. However markets may bounce back with strong momentum from that point if there is any positive news flow. Traders can enter longs once the market takes a breather around 5066. Short traders are advised to cover their shorts as soon as the market reaches 5100.There will be high volatility being the settlement week and also last week of this financial year.