Index consolidating in the absence of a trigger: Angel Broking

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

"It was yet another day of consolidation for our markets in the absence of any trigger on domestic as well as global front. Index had a sluggish start and then corrected in initial trades. During the latter half, we saw a bit of recovery with no major momentum and thus, eventually Nifty concluded the session with negligible losses.

Since there was no major movement, the chart structure remains unchanged. The only notable observation is the placement of short term moving average. Since last three sessions, index has been making lows precisely at the '5-day EMA', which is acting as a sheet anchor for intraday traders. Hence, going ahead, 10833 followed by 10800 would now be seen as key supports for the coming trading session; whereas, on the upside, 10900 and 10941 are the levels to watch out for.

We had highlighted about heavyweight counters looking a bit tired and hence, we may see profit booking in these names. This is exactly what we saw today and hence, unless we see some buying resuming in these names, index is likely to remain in a small range. Till then it would be a prudent strategy to keep focusing on individual pockets."

Source : Equity Bulls

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