Crucial support of 10141 in jeopardy: Angel Broking

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

"In the week gone by, our markets had swings on both sides and in fact, benchmarks seemed to have decoupled as there were totally different directions seen from the global bourses in the latter half of the week. Eventually, this heavy sell off on Friday resulted into a decent cut from weekly highs to conclude proceedings below the 10200 mark (on weekly basis) for the first time after December 01, 2017.

As chartist, if we look at the daily chart, this corrective move is not at all surprising. We could clearly see some relief move retesting breakdown points and couple of key moving averages placed in the vicinity of 10420 - 10460 and then a resumption of downward trajectory in the latter half. The weekly time frame charts turned negative recently and are clearly proving their significance. Now, traders would keep a close eye on recent swing low of 10141 as a slide below this crucial junction would reinforce the selling pressure in the market. According to us, it's a matter of time now and hence, we would stick to our recent negative stance on the market and continue to expect Nifty testing sub-10000 levels.

Traders are advised not to make any kind of bottom fishing soon and should trade with proper exit strategy. For the coming week, 10260 - 10350 would now been seen as strong hurdles. Any possible move towards these levels is likely to get sold into."

Source : Equity Bulls

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