Index rebounds from its support; expect uptrend to resume: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):

"SGX Nifty hinted at marginal negative opening today and in line with expectations, the index started the day on a weak note. Nifty continued the negative momentum till noon; but it reversed and rallied higher for rest of the day to wipe out the intraday losses and end on a flat note.

The time wise correction continues for our market and once again the '20 DEMA' acted as a support for Nifty which have been a savior in the recent past as well. In last few sessions, the index has consolidated in the range which lad led to formation of a 'Symmetrical Triangle' on the lower time frame chart. A breakout above 11960 (the resistance end of the trendline of the pattern) could kick in a positive momentum to surpass the recent resistances. On the flipside, 11800-11770 range is seen as a crucial support and until this support is broken, traders should avoid taking any trades against the higher degree uptrend.

Amongst the sectorial front, stocks from the 'Metal' space have witnessed buying momentum in last couple of sessions and hence certain stock from this space could see outperformance in near term. Also, the midcaps are expected to come back in momentum when the broader market resumes the uptrend post this consolidation. Hence, traders are advised to be vigilant on stocks within these sectors from a trading perspective."

Source : Equity Bulls

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