Selling reemerged at higher levels, still remain hopeful: Angel Broking

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

"The set up was just perfect for our markets to have a head start for the new trading week. In line with cheerful global peers, our markets started higher and then extended this lead in the first half. Things started to look hunky dory and all of a sudden, Nifty started correcting after posting a high of 11146.90. In fact, the selling augmented in the penultimate hour to pare down all losses to conclude the day on a flat note.

Markets have shown some encouraging signs in last couple of days and today too things started to look glittery. But considering recent dejected mood, markets faced strong selling pressure at higher levels and left the charts clueless at the end. However, having said that, we still like to remain a bit hopeful as long as a crucial support of 10900 is not violated. We continue with the similar kind of commentary and expect the index to reattempt testing of 11130 - 11180. As of now, it's just anticipation, but a beginning of a healthy relief rally would only be confirmed after surpassing 11180 on a sustainable basis. In this scenario, 11250 - 11350 becomes the next resistance zone for the index. On the lower side, 11037 followed by 11000 would be seen as immediate supports.

At this juncture, traders are advised to adopt a stock specific approach and try to avoid taking undue risks."

Source : Equity Bulls

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