Markets shrugged off global cues, 9230 - 9200 remains to be a strong support zone: Angel Broking

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

Technical Outlook

Our markets opened lower as most of the global bourses turned apprehensive after US Fed releasing their March minutes. However, looking at yesterday's price action, it appears that our markets are focusing more on domestic front instead of global events. After consolidating around market lows for some time, our markets managed to recover post the RBI monetary policy in the concluding hour to end the session with negligible loss.

Technically speaking, we witnessed some indecision in the market as the daily chart depicted a 'Dragonfly Doji' pattern at the end of yesterday's session. However, on the other hand, we had expected 9230 - 9200 to act as a strong support and suggested to use dips to create long positions in the market. In-line with our expectations, the Nifty recovered after posting a low of 9218.85. This is clear sign of a strong up trend and hence, we would like to stay with the flow rather than taking a contradictory bet. As far levels are concerned, 9230 - 9200 remains to be a strong support and on the flipside, we would expect continuation of this up move towards 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. It is to be noted that the prudent strategy at this juncture would be to focus on individual stocks in order to fetch higher returns.

Source : Equity Bulls

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