Keep holding longs; new high is on cards soon: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking.

Technical Outlook

Trading for the week began on a flat note taking mixed cues from the Asian bourses. However, the index attracted tremendous buying interest around Friday''s low, which eventually led to a decent broad-based rally of nearly three fourth of a percent gains.

In general, so many market participants were a bit skeptical of Nifty''s close beyond the 8820 mark on Friday. But, we respected this price action and in technical terms, interpreted this as a breakout from the trend line resistance of 8820 with an upside gap. Thus, we are not so surprised by the up move we witnessed today. In fact, today''s move has added further conviction to our view that we are likely to see new highs quite soon in the market. For the coming trading session, the Nifty is likely to head towards 8920 ? 8969 after making a move above Fridays high of 8896.45. We anticipate this to happen and hence, traders are advised to keep holding directional long positions by now trailing a stop loss at 8700. However, the intraday support is seen at 8856 ? 8804.

Source : Equity Bulls

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