Index below 9172, but still 9100 seems to be a sheet anchor: Angel Broking

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

Technical Outlook

Despite SGX Nifty indicating a weak start, today's flat opening was mainly influenced by the IT giant 'Infosys' as the counter opened higher on the back 4QFY2017 results. However, the market once again witnessed some selling pressure in initial trades and as a result; we witnessed a gradual decline throughout the remaining part to end the session tad above the 9150 mark.

Today's price action was very much on the lackluster side as the index kept on crawling downwards throughout the session; but once again, a decent stock specific action was witnessed in some of the midcap counters. Due to tail end selling pressure, the Nifty eventually sneaked below the hourly '89-EMA' level of 9172 on a closing basis. We were of the opinion that a breach of this important support would result into a strong selling pressure; but we did not observe anything like this. Since, the hourly '200 SMA' (9100) is not so far away from current level, we do not interpret today's corrective move below 9172 as a major worrisome factor. Rather would advise traders to look for buying opportunities around 9130 - 9100 levels. On the flipside, 9180 is now likely to act as an immediate hurdle. The positivity would resume only once the index manages to surpass this hurdle convincingly. In this case, we would expect resumption of the recent uptrend towards 9226 - 9246 levels.

Source : Equity Bulls

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