10132 - A level to watch out for: Angel Broking

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

"Some respite in global markets resulted into a gap up opening by a fair margin. The index reclaimed the psychological figure of 10200 in the initial hours. However, as expected, higher boundary (10224) of the mentioned resistance zone did not allow Nifty extending these gains. This resulted into a strong profit taking in the second half and in the process; the Nifty trimmed decent portion of early morning lead to conclude tad above the 10150 mark.

Now, if we meticulously observe the daily chart, Nifty has closed around the interesting point; keeping both counterparties (bulls and bears) clueless about the immediate direction. In our sense, today's low of 10132 would be seen as an important support for the coming day. A sustainable breach below this level would trigger some selling to retest 10075 - 10033 levels. On the higher side, 10195 followed by 10227 are likely act as intraday hurdles. Since, we are approaching the truncated expiry week; traders are advised to keep a close track of mentioned levels as we would see some expiry factor playing out in next 3 - 4 days.

We reiterate that traders should remain light within this consolidation and should rather focus on individual stocks with a proper exit strategy. Directionally, market is still not done with the corrective phase and hence, booking timely profits in existing longs with a short term view makes a good ploy for the momentum traders."

Source : Equity Bulls

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