Strong bout of profit taking, fortunately key supports defended: Angel Broking

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

"Trading for the week kick started on a positive note slightly above 11700, very much in-line with other Asian peers. However, it looked like a fragile gap up opening and hence, markets started coming off immediately from opening trades. In fact, the selling aggravated as the day progressed and hence, we not only erased early morning gains but also went on to sneak well below key support levels by shedding more than 100 points from previous close. Fortunately, some buying emerged at lower levels which pulled the index to reclaim the 11600 mark on a closing basis.

Today, there were bundle of heavyweight stocks that remained under pressure throughout the day. The broader end of the spectrum too had a rub off effect of this decent profit booking. Although, we have managed to find some support around key technical moving averages on hourly chart, the subsequent session would be quite crucial or we can say, may turn out to be a trend decider for next few days. As of now, we still do not see any major reason to worry for and construe this as a part of a profit booking phase. For the coming session, 11549 would now be seen as a crucial support. A sustainable move below this would result into an extended correction towards 11500 - 11465. On the flipside, the immediate resistance is now placed in the zone of 11650 - 11710 levels.

At this juncture, the ideal strategy would be not to trade aggressively and one needs to be extremely stock specific when it comes to a momentum trade."

Source : Equity Bulls

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