10400 - 10450 levels to watch out for: Angel Broking

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

"After an extended weekend, our markets opened on a cheerful note and traded with positivity for the first couple of days. However, on Wednesday, we witnessed a complete nosedive after Dow and HANG SENG futures cracking on some developments over the global trade war. At the close, things looked extremely terrifying; but once again a smart recovery in US bourses lifted markets higher during the latter half of the week. The eventful week eventually ended on a positive note by reclaiming the 10300 mark.

Barring Wednesday, it was certainly a good week for our markets as we saw individual stocks soaring to a great extent and thereby bringing wide smiles back in traders' fraternity. If we refer to our intra-week articles, we were anticipating this stock specific rally to unfold, because none of the top 6 - 7 heavyweight constituents were indicating immediate downside. Now, since, the Nifty has broken out from the recent small 'Falling Channel' above 10250 last week, we expect this move to continue towards 10400 - 10450. Whether it extends further or not, we have to keep a close eye on these levels. On the downside, 10280 followed by 10227 would be seen as immediate support levels.

With a broader view, we would like to draw traders' attention towards a key point. If we look at the weekly and monthly charts, we still believe that worse is not over yet for our markets. This is just a relief rally and hence, one need to keep booking timely profits and ideally should stay light on positions."

Source : Equity Bulls

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