'IT' index hastening towards its record highs: Angel Broking

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

"For the third consecutive day, our markets opened quietly in-line with other global peers. Subsequently, index continued its consolidation in the first half; but post the mid-session, we saw good buying emerging in some of the heavyweight counters; leading index towards the mentioned level of 10478. Eventually, Nifty managed to reclaim the 10450 mark on a closing basis.

Yesterday's tail end buying was clearly an indication of Nifty extending this move towards previous swing high of 10478. The move towards this junction became quite obvious when IT conglomerates once again started spiking up and as a result, the Nifty went on to clock intraday high of 10469.90. For the coming session, 10478 would be the level to watch out for. Considering today's close, surpassing this level is clearly on cards. However, we would reiterate that the index is now about to enter a strong cluster of resistances and going by the higher time frames charts, we construe this recent move just as a relief rally. Hence, now it's time for short term traders to start liquidating long positions in a gradual manner and should rather stay light with a stock specific approach. For the coming session, 10478 followed by 10535 has now become an immediate resistance zone; whereas on the downside, 10430 - 10395 would be seen as crucial supports.

Clearly, the entire IT pack was the charioteer of today's move in the index. Hence, going ahead, a continuation of 'Nifty IT' towards its record highs of 13400 - 13534 would play a vital role in extending this relief rally in Nifty in the zone of 10500 - 10600."

Source : Equity Bulls

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