Start liquidating longs as Nifty approaches 10600: Angel Broking

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

"This has certainly been a good week of trade for our benchmark indices; in fact, the real action was seen in the broader market that offered decent trading opportunities for market participants. The only disappointing thing was Nifty could not hold on to its position above the 10500 mark due to strong profit booking in IT and some of the banking conglomerates in the latter half.

There has been a steady move in the Nifty throughout during the week and has managed to almost reach expected levels of 10400 - 10500. As mentioned in the earlier article, considering the recent development in some of the heavyweight counters, a possibility of extending this move towards 10580 - 10640 cannot be rule out. But, now, we will not be as convinced as we were couple of week ago. We would certainly avoid aggressive longs and in fact, traders should ideally start liquidating long positions in a gradual manner. It would certainly be a prudent strategy to stay light with a stock specific approach. For the coming session, 10520 followed by 10580 would be seen as an immediate resistance zone; whereas on the downside, 10450 - 10355 are likely to act as crucial supports.

With a broader view, we would reiterate that 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 should stay light on positions."

Source : Equity Bulls

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