10600 becomes a strong support for the current series: Angel Broking

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

"Despite SGX Nifty indicating a weak start, our markets managed to open flat and then consolidated in a small range for some time. However, similar to Monday, post the midsession, we saw buying emerging at lower levels which extended the previous day's up move towards the 10700 mark.

Yesterday, the breakout from 'Falling Wedge' was confirmed and the positive impact of this was visible thereafter. Considering this development, we had advised buying any possible decline in the zone of 10600 - 10570. Today, in the initial trades, we saw index declining in this zone and then once again buying momentum emerged in the latter half to head towards the 10700 mark. Going ahead, we would expect continuation of this move towards the recent hurdles of 10740 - 10775. Traders holding existing longs are advised to take some money off the table once index enters this zone and then wait for further developments to happen. On the flipside, 10630 followed by 10590 would be seen as immediate supports.

The banking index clearly has been the major driver in last two days' move and along with that the recent laggard IT basket has managed to infuse some strength. Since, the broader market saw good traction throughout the day, it would be a prudent ploy to stick to stock specific approach."

Source : Equity Bulls

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