Once again hourly '89 EMA' became the savior, Hold longs until it remains unbroken: Angel Broking

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

Technical Outlook

Once again, despite having unfavorable global cues, our markets opened on a flat note and it was clearly poised for an up move. But as everyone knows, market is not as easy as it looks. We witnessed a sudden nosedive in the market immediately post first 15 minutes of trade. The Nifty cracked nearly 80 points in a span of half an hour. However, the index somehow managed to hold its ground and gave a decent recovery throughout the remaining part of the day to conclude tad above the 9200 mark.

Today's session was almost a nightmare for day traders as the market behaved like a double-edged sword throughout the day. At one point, things were looking extremely scary considering the velocity at which it fell in the initial hour; but, once again, the hourly '89 EMA' provided a rock solid for our market. Now, if we meticulously assess past couple of day's price action, one thing is quite clear now. The Nifty is likely to continue its near term upward bias as long as it maintains its position above the hourly '89-EMA' level of 9172 on a closing basis. Only a breach of this crucial support would result into loss of momentum and in this scenario, we could see Nifty retesting lower levels of 9130 - 9100. However till then, the positivity continues in the market and in fact, we could see a strong buying interest coming into the market after surpassing the intraday trend line level of 9247 to extend the rally first towards 9274 and then beyond the 9300 mark.

Source : Equity Bulls

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