No major movement in the truncated week, 11700 defended successfully: Angel Broking

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

"After an extended weekend, our markets had a sluggish opening on Tuesday as there was no major trigger on the domestic as well as global front. Yes, Brent crude cooled off a bit; but our markets had already discounted it while closing on previous Friday. During the initial hour, all of a sudden, index took a nosedive and in the process, we once again slipped below the key support of 11700. Fortunately for us, quite similar to earlier session, we had a good upsurge during the penultimate hour, which pulled the index back into the relatively safer territory. This was followed by two back to back muted sessions to conclude the truncated week tad above the 11700 mark.

It's been yet another week of consolidation for our markets, in fact the overall intra-week range shrunk drastically due to less number of sessions. Honestly speaking, there is nothing much to comment on considering the muted price action. The only notable observation that can be highlighted is the formation of a 'Triangle' pattern on hourly chart. Hence, going ahead, 11790 - 11655 are the levels to watch out for. A decisive move in either direction would confirm a breakout and thereby would provide an immediate path of action for the market participants.

At present, the ideal strategy would be to keep focusing on individual pockets that were buzzing during the week. We are heading towards the mega event (Election Verdict slated on May 23) and hence, a possibility of rise in volatility cannot be ruled out. One needs to keep this thing in mind and should position accordingly from henceforth till the actual event day."

Source : Equity Bulls

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