Market trim losses post gap down opening: Angel Broking

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

"The increased US Iran tensions had a negative impact on most of the Asian bourses in the morning and hence, out markets too started the session with a gap down of more than 100 points. However, the index then recovered gradually throughout the day and trimmed majority of losses to end above the 12000 mark.

Owing to the news of Iran firing missiles at American forces based in Iraq, the benchmark indices started the session with a gap down opening. However, usually during such gap down days, the follow up move post opening is more important to determine the trend. The indices did not witness any follow up selling post opening and infact it recovered gradually during the day to trim majority of the losses. Inspite of indices trading in the red, the highlight were the cash based midcap and small cap names which witnessed good momentum throughout the day. Thus, this entire scenario indicates that the index might continue to see some consolidation and 11900-12000 range is likely to act as a support. On the flipside, 12150-12200 is the immediate resistance which needs to be surpassed for resumption of the uptrend. So as of now, the index could trade within the range of 11900-12200 and a breakout beyond the same will lead to a directional move.

However, stock specific momentum still continues in the broader markets and hence, traders should be more focused on picking stocks which could provide better trading opportunities in near term."

Source : Equity Bulls

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