'Buy on dips' market turned into 'Sell on rise': Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

Technical Outlook

Today, our markets opened higher owing to cheerful mood across the globe. This optimism accelerated as the day progressed to extend early morning lead towards 9560 - 9580. However, as expected, this resistance zone acted as a stiff hurdle and as a result, the Nifty corrected during the second half to pare down major portion of gains.

Yesterday's move was precisely on our expected lines and hence, we are not so surprised with the kind of closing that we had slightly above the 9500 mark. With reference to our previous articles, the Nifty was expected to bounce back a bit towards 9560 - 9580. We saw Nifty bouncing towards the mentioned zone and clearly, this attempt was treated as an opportunity to exit longs. Now, if we look at the daily chart, the index has precisely tested the '20 -EMA' and has fallen from it, which we believe is an indication of weakness and hence, we continue to remain cautious on the market. A 'Lower Top Lower Bottom' formation along with the falling 'RSI-Smoothened' on daily chart indicates extension of this corrective move at least towards 9420 - 9340 in next few days. Short term traders should keep one thing in mind now, a 'Buy on dips' market has now turned into a 'Sell on rise' market and hence, they are repeatedly advised not to remain aggressively long on the market and in fact, try to use intraday rallies to go short on the market. Going forward, 9545 - 9575 would now be seen as immediate hurdles for the index.

Source : Equity Bulls

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