Hitting record highs is merely a formality now: Angel Broking

Hitting record highs is merely a formality now: Angel BrokingDaily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"Yesterday's smart rally was followed by a gap up opening beyond the 11100 mark, indicating strong momentum to continue for the day. Barring a small bout of profit booking in the midst of the day; index managed to hold its position firmly inside the positive territory. However, it appeared that the market had two different faces i.e. when we look at the index move, it was very small and slow in nature but if we take a glance at the broader market, we can clearly see so many stocks soaring to a great extent.

As far as direction is concerned, no brainer market is heading northwards and testing / hitting record highs is merely a formality now. For the coming session, 11171.55 would be seen as immediate resistance and surpassing this would unfold the uncharted territory for the index. On the downside, 11092 followed by 11055 would be seen near term support levels. Hence, we would continue with our positive stance and would reiterate using declines as a buying opportunity.

Further, the 'midcap' index is moving in-line with our anticipation and hence, last couple of days was quite easy to spot the potential candidates. However, we believe that going ahead; it would not be as easy as it was since last two days. Hence, one needs to very selective now while picking up the right proposition with a trading perspective. Momentum traders can opt to book partial profits and keep following proper exit strategy."

Source : Equity Bulls

Keywords