Nifty gearing up for sub-10000 levels: Angel Broking

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

"After yesterday's massive sell off, our markets were expected to open significantly lower. But, this wasn't the case, the index started with a mildly negative bias after SGX Nifty recovering smartly from early morning lows. However, during the entire day, index remained under pressure and had a gradual recovery to conclude around the 10150 mark.

Today's move was not so surprising for the traders' fraternity; however, the kind of magnitude we saw on Tuesday was clearly missing. Practically such sluggish movement was obvious; because after yesterday's breakdown, the trade on the short side became quite evident and generally, market does not obey obvious moves. However, we fell because of the major breakdown that we saw below the 10300 mark. Now, index has precisely tested the '200-day SMA' placed around 10140 and we've been repeatedly mentioning about this possibility since last 3 - 4 weeks. Considering the broader picture, we will not be surprised to see sub-10000 levels soon but how it pans out need to be observed closely. For the coming day, 10100 - 10033 would be seen as immediate support zone. On the higher side, 10208 followed by 10280 remains to be strong hurdles.

Markets have now reached the crucial support zone and hence, for intraday traders, it would not be wise to create aggressive shorts if index trades around the mentioned support zone during the first half. Going ahead, index is likely to trade sluggish and the real action would be seen in individual stocks. Thus, one needs to focus on such moves rather than scratching heads in the index."

Source : Equity Bulls

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