Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking
It was a historical day for Indian markets as our benchmark index opened with a humongous upside gap cheering to BJP's thumping victory in UP assembly elections and then went on to register a record high of 9122.75 on Nifty. Although, we witnessed a mild profit taking at higher levels, traders should get encouraged by highest ever closing well above the 9000 mark.
Finally, the much awaited breakout beyond the 9000 mark is a reality now and it has happened with a 'Breakaway Gap', which certainly augurs well for our markets. With reference to our recent articles, we are not surprised with this move as we have been quite vocal about the probable breakout to post a new high for our markets. Despite some hint of profit booking at higher levels, we would continue with our bullish stance on the market and expect the Nifty to keep marching higher, first towards 9200 and then towards our near term target of 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. On the downside, today's gap area of 9060 - 8975 would act as a strong support zone. Any dip within this range should be used to create fresh longs in the market without any hesitation of being an overbought territory.