Market continue to look depressed, 10583 a crucial support: Angel Broking

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

"We had a quiet start today, in-line with other Asian peers. Post initial consolidation, index picked up strong momentum in the upward direction to reclaim the 10700 mark. However, all of a sudden, the selling intensified at higher levels and within no time index erased all gains and eventually went on to close in the red tad above 10600.

First half was very excellent for our market and there were some early signs of revival seen in the broader market. But quite similar to recent trend, massive sell off seen in the latter half; trapping momentum traders once again on the wrong foot. Clearly market looks extremely depressed and such kind of market is as good as a nightmare for traders. As far as levels are concerned, recent swing low of 10583 would be seen as a crucial level and any decisive move below this would lead to extended correction towards 10500 and below. On the upside, 10650 - 10720 are the levels to watch out for.

One should avoid aggressive longs till the time 10720 is not crossed convincingly. We advise traders to remain light and avoid taking undue risks."

Source : Equity Bulls

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