Market zoomed ahead of exit polls, 10296 - 10330 levels to watch out for: Angel Broking

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

"Today’s gap up opening suggested that traders across the globe digested the rate hike by US Fed. However, very much on expected lines, the entire lead got sold into and in fact, aggravated selling post the initial hour resulted into a slide below the 10150 mark. This was followed by a sharp recovery in the latter half to eventually conclude the volatile session with decent gains over a half a percent.

Yesterday’s move was a mirror image of what we saw on Wednesday. In fact, the way markets rebounded with immense volatility was certainly intimidating for pessimistic traders. Such volatility was quite evident just ahead of Gujarat assembly election exit polls. The way market has closed, the bulls must be quite elated as we saw index taking a u-turn precisely after retesting 61.8% retracement level of 10140, in fact it was one of the levels (10140 - 10100) mentioned in our earlier article. Having said that we must accept the fact, the intraday bounce was on cards but certainly not the way it has. Technically speaking, we supposedly remain cautious as long as recent swing highs of 10296 and 10330 are not surpassed convincingly. Going ahead, we expect volatility to scale up further before the final result of this political event unfolds on Monday. On the downside, 10200 - 10140 would be seen as key supports. Traders are advised to keep a close track of these crucial levels and should avoid taking undue risks."

Source : Equity Bulls

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