200 SMA playing a sheet anchor role; but expect breakdown soon: Angel Broking

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

"Global markets continue to show some respite and hence, for the second straight day, our markets opened with an upside gap. The index then slipped into a consolidation mode and traded within a slender range for the major part of the day. However, a strong selling in the penultimate hour dragged index lower to pare down all early morning gains.

After yesterday's smart recovery from the '200-day SMA', there was no brainer that we could see some extension of it. Since, the overall sentiments have changed; traders did not have conviction to remain long and eventually chose to exit with small gains. With a broader perspective, we would continue with our 'sell on rise' approach. Before this, 10140 - 10350 has become a no trade zone for the market. If any negativity has to resume, it would only happen after violating the 10140 mark. Hence, the ideal scenario to initiate short position would be either below this crucial junction or after seeing a decent relief rally towards the higher end i.e. 10350 - 10400. As of now, we do not expect the Nifty to surpass these hurdles in coming days. On the downside, the index is likely to first slide towards 10033 and then a possibility of entering sub-10000 levels cannot be ruled out.

Since, it is slightly difficult envisaging the time target; traders ideally shouldn't be too concern about the time; rather keep focusing on mentioned key levels. One should remain light and avoid taking undue risks in such kind of uncertainty. In case of some relief rally within the consolidation range, traders should focus on individual stocks and it would be wise to make timely exits."

Source : Equity Bulls

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