No obstacle seen before 11900, do watch out for 'Metal' space: Angel Broking

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

"Recently, our markets have been clearly outperforming the major global peers and now, since they have started rallying, it's acting as some kind of impetus for our market at least for the opening proceedings. We had a decent gap up opening today which was followed by extended gains in the initial trades. However, some profit booking was seen at higher levels and hence, during the remaining part of the day, index oscillated within a slender range to eventually conclude well above the 11700 mark.

Today, it was the typical kind of session when index looks to consolidate after travelling some fair distance in a quick succession. Before anyone could realized, our markets are at new highs and for Nifty yet another milestone has been conquered above 11700. This is certainly a remarkable achievement if compared with the recent uncertainty in the global market. Now, if we look at the further route map, we are not seeing any obstacle before 11900, which is the 161% reciprocal retracement of the previous down move. So no brainer, we would stick to our recent optimistic stance without thinking too much about the few overbought indicators. The encouraging sign of any rally is if we see base shifting higher after every uptick, traders get know where they can place their exit strategy and this has been the characteristic of this ongoing move. For the coming session, 11710 followed by 11650 would be seen as immediate support zone and on the upside, the psychological level of 11800 first and then 11900.

Since last couple of days, we have been mentioning about 'Metal' sector which seems the place to be in for next few days. Today's close is quite promising and stocks are gearing up for strong moves. Hence, one should focus on potential candidates within this basket in order to get better trading opportunities."

Source : Equity Bulls

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