Nifty to enter four-digit territory soon: Angel Broking

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

"Finally, cues from US markets were in-sync with our markets as well as other major Asian bourses. We had a gap down opening and then a small patch of consolidation ahead of the RBI monetary policy. But, once again a 'Status Quo' (in-line with consensus) from this event resulted into further weakness in the penultimate hour to end the session tad below the 10050 mark.

Due to today's correction, the Nifty has closed at the two-month low, which was very much in-line with our recent expectations. On the daily chart, we initiated 'sell' in index around 10380 – 10350 with an anticipation of weakness and now we can see confirmation of short term reversal in the form of 'Lower Top Lower Bottom' on daily chart for the first time in last several months. Thus, we are now gaining further conviction over recent bearish stance on the market. Now, it's a matter of time that we would see index entering into a four-digit territory. For the coming session, 10076 – 10104 would be seen as immediate resistance zone. In case of any extended bounce also, traders are advised not to make any kind of bottom fishing and rather use such relief rallies to exit existing long positions."

Source : Equity Bulls

Keywords