Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking.
Once again, our markets opened higher which we believe was mainly on the back of US dollar index extending its losses and inching closer to the 100 mark. However, this opening lead was very short lived as we witnessed consistent selling pressure in the market and as a result; the Nifty kept falling gradually to fill the entire gap area created in the morning.
Now, due to yesterday's gap up opening, the Nifty reached our initial target of 9200 and thereafter, we witnessed a decent profit taking in the market, which was evident also after such a massive rally seen in the recent past. Despite this, the weekly chart structure still looks extremely sturdy and hence, directionally, we continue to remain upbeat on the market. We reiterate that the Nifty is likely to head towards 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we saw today) by momentum traders cannot be ruled out. On the lower side, 9100 - 9050 levels would provide a strong support in the forthcoming week. Traders are advised to keep using such dips to create fresh longs in the market.