Some consolidation on the weekly expiry day: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):"We had a gap up opening by a small margin today in the absence of any major trigger on the global as well as well domestic front. Index then slipped into a consolidation mode for the major part of the day. Last couple of hours saw some momentum; but there was no clear direction seen as we were approaching the expiration of weekly options contract in Nifty and Bank Nifty. Eventually, Nifty ended the session with negligible gains by successfully defending the 11050 mark.

After three days of strong optimism, we had a pause to the momentum in index as well as in the broader market. However, the undertone still remains bullish as we saw index maintaining it position well above all key levels. The foundation was laid by Tuesday's massive intraday rally and hence, today's pause should rather be construed as a pullback move before beginning the next leg of the rally. As far as levels are concerned, 11027 followed by 10998 would be seen as immediate supports; whereas on the higher side, we would soon expect the index to test recent swing high of 11118. In fact, looking at the overall set up, we will not be surprised to see this rally getting extended beyond this junction in days to come.

Traders are advised to stay positive and should ideally avoid placing contradictory shorts in the market. However, having said that, one needs to be very selective now while picking up right propositions in order to ride the momentum."

Source : Equity Bulls

Keywords