Use these rallies to exit index specific longs: Angel Broking

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

First half of the day was a complete chaos as trading halted in one of the major exchanges, National Stock Exchange (NSE) due to a technical glitch. The trading activity resumed higher in line with its peer exchange (BSE) and as a result, the Nifty registered yet another all time high way above the 9750 mark on a closing basis as well.

Honestly speaking, we were not expecting the index to surpass the strong resistance zone of 9720 - 9750 with an ease. But, having said that, we are still a bit reluctant to change our view; considering the placement of few technical indicators such as, the 'RSI-Smoothened' and 'Few Key Fibonacci Ratios'. We may sound a bit stubborn but we do not want to neglect one thing that 'the bottoms are made out of panic and corrections take place in exuberance'. Looking at past couple of day's action, we believe that the situation is a bit hunky-dory now and traders have started becoming too complacent. Hence, we would continue to advise staying light in the market (index specific longs should be booked) and one should focus on individual stocks in order to get better trading opportunities. On the flipside, the immediate support has now shifted towards 9700 - 9640.

Source : Equity Bulls

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