Resistance shifted a bit higher at 9630 - 9650, stock specific action to continue: Angel Broking

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

Technical Outlook

Today, we witnessed a gap up opening mainly on the back of biggest tax reform ever in India, GST rollout from July 01st 2017. After a minor pause, the optimism resumed during the penultimate hour to push the index beyond the 9600 mark on a closing basis.

Due to yesterdays price activity the Nifty has once again managed to regain the 9600 mark. In fact, it has crossed this hurdle with an ease, which was slightly unexpected for us looking at Friday's close. However, the stock specific optimism was very much in line with expectations and looking at the momentum, we expect this resistance to shift a bit higher i.e. 9630 - 9650 (78.6% Fibonacci retracement of 9698.85 to 9448.75). Since, we had a confirmation 'Lower Top Lower Bottom' on daily chart last week; we believe that this mentioned resistance zone should now act as a sturdy wall. Therefore, index specific longs should ideally be lightened up (or traders can look to go short keeping a strict stop loss at 9720) around it as the possibility of some consolidation in a range of 9650 - 9450 has now increased. Within this, we expect continuation of this stock specific action in midcap counters which may offer decent trading opportunities.

Source : Equity Bulls

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