Markets opened on a subdued note19/02/2010

Markets opened on a subdued note, traded in a narrow range with a negative bias and finally closed in the negative territory. On the Hourly charts we are witnessing that indices are trading in an upward slopping channel. The prices have moved very close to the lower trend line of the channel. The rising lower trend line of the channel should act as a support (16200 / 4860 levels).If the indices hold on to the lower trend line, then it is likely to test 16480 – 16550 / 4930 – 4950 or to an outer extent of 16680 / 4980 levels. On the flip side if indices breach the lower trend line then it is likely to test 16130 – 16049 / 4830 – 4800 levels