Some hopes built ahead of Karnataka elections: Angel Broking

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

"It's been a good week of trade for the market participants as we saw a decent gradual recovery throughout the week from the 10600 mark. But, if we try to analyze it thoroughly, we can only see positive moves in terms of the index or few key heavyweights. Broadly, we can conclude it as a terrible week for so many counters especially from the midcap universe that have been hammered brutally during the week. On the other hand, Friday's late surge enabled Nifty reclaiming the 10800 mark ahead of the Karnataka election verdict. May be some hopes have been built from the traders' fraternity on BJP becoming victorious in this crucial battle.

From a technical point of view, surpassing this stiff hurdle of 10800 certainly bodes well for the bulls. So, if we have to keep this event aside and make a judgment only on the basis of charts, we may see continuation of the ongoing momentum towards 10860 - 10900 levels. As we all know, predicting such events can be as difficult as nailing the jelly to a tree. Hence, we do not want make any comment in this regards. But, in our sense, we would see some kind of profit taking at higher levels post the event in case of a favorable outcome as well. On the downside, 10690 followed by 10600 would be seen as key supports. A sustainable move below these points would apply brakes on the ongoing optimism.

Hence, traders need to be prepared for all kind of possibilities and should ideally position themselves accordingly. Considering the stock specific destruction in the week gone, traders need to be very agile when it comes to a stock picking. In the initial part of the forthcoming week, it's advisable to stay light and keep assessing how market behaves for a day or two post the key political event."

Source : Equity Bulls

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