Index sees profit booking, expect volatility to increase soon: Angel Broking

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

"Today morning, the global set up was just perfect to kick start the trading week on a cheerful note. Our benchmarks opened higher in-line with the SGX Nifty; however, the follow up buying was clearly missing right from the word go. Index consolidated for the major part thereafter and eventually in the latter half, we saw some profit booking to conclude the session with merely four tenths of a percent.

Now, if we look at the hourly chart, the Nifty is oscillating within the boundaries of a 'Triangle' pattern and we are nearing the apex point of the same. Hence, quite soon, we would see breakout on either sides which may probably expand the range and thereby volatility as well. As long as Friday's low of 10628 remains intact, we would expect a breakout to happen in the upward direction i.e. beyond 10855. Hence, going ahead, one needs to keep a close eye on this development and should position accordingly. A breach on the higher side would open up the next leg of the rally towards 10920 - 11000. On the lower side, 10750 - 10658 would now be seen as crucial supports."

Source : Equity Bulls

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