Still a strong hurdle at 9700: Angel Broking

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

Today, we witnessed a gap up opening with a small margin as indicated by the SGX Nifty. Subsequently, the optimism accelerated as the day progressed and during the second half, the Nifty made a yet another successful attempt to test the 9700 mark. However, once again, we witnessed some profit taking at higher levels towards the fag end to trim some portion of intraday gains.

Due to yesterday's move, the Nifty managed to surpass the mentioned resistance zone of 9630 - 9650 on a closing basis. Despite this, yet another narrow range candle after kissing 9700 does not give any comfort to change our cautious stance. One of the key observations on weekly chart is certainly holding us back. We are meticulously observing the placement of 'Parabolic SAR' indicator which turned into a 'Sell' mode last week. The Nifty is now placed tad below the higher end of this indicator and going ahead, we still believe that it would be a daunting task to overcome it in the near term. Hence, we would continue to advise staying light in the market (at least index specific longs should be avoided) and should focus on individual stocks in order to get better trading opportunities. On the flipside, 9640 - 9600 are seen as immediate support levels; but, with a near term view, these levels may get breached soon.

Source : Equity Bulls

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