Market struggles at higher levels, retested 14200 again : Angel Broking
(Time Zone: UTC)
Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We had a surprising opening for the second consecutive session but unlike Monday, this time it was in the upward direction. In the initial hours, market came off a bit gradually after a good head start above 14500. It managed to maintain its positive posture for the major part of the first half. However, in the latter half market started correcting rapidly and due to a sudden downtick in the penultimate hour, Nifty went on to test yesterday's low of 14200. It was about to break it, but there was some recovery seen towards the fag end which eventually pulled the index slightly higher to close around the 14300 mark.
Market is struggling at higher levels and today's session is a clear indication of this as it failed to sustain despite a strong start. Today's high precisely coincided around the mentioned resistance zone of 14500 - 14550 and the way it dropped towards 14200 in the latter half, things do not bode well for the bulls. Although we did manage to hold this key support today, the possibility of sliding below it, has increased now. Below 14200, it opens up the downside zone of 14000 - 13700 and hence, we continue to remain cautious and advise against creating aggressive longs for a while. Today barring Pharma, most of other sectors looked weak in the latter half. Thus one need to be very watchful while picking up a stock specific trade."