Market slipped into a consolidation mode: Angel Broking

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

quot;Once again our markets opened higher on the back of positive cues from the US bourses. Just like previous couple of sessions, the index remained within a narrow range for the major part of the day. However, a strong broad based buying interest in the penultimate hour pushed the Nifty higher to close at the highest point of the day to reclaim the 9850 mark.

If we summarize the overall price development in last couple of weeks, it seems the index has now slipped into a consolidation mode. Although, yesterday's smart recovery in the latter half was slightly unexpected for us, we would continue with the cautious stance. The reason behind is if we look at the hourly chart meticulously, it can be seen that the Nifty has still given a pullback move towards the 'Upward sloping Trend Line' level of 9855, which coincides with the '89 EMA'. Hence, going ahead, we would be closely tracking this key resistance zone of 9860 - 9885. On the flipside, 9820 - 9778 would now be considered as an intraday support zone. Traders are advised not to get carried away by this bounce back; as such moves in a consolidation phase can be deceptive at times. At this juncture, a prudent strategy would be to keep tracking above mentioned levels and following a stock centric approach.quot;

Source : Equity Bulls

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