Positive market breadth leads to recovery from support of 8800: Angel Broking

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

"Post Wednesday's correction in the index from its highs, Nifty started trading marginally lower in today's session. The index managed to find support around 8800 and pulled back higher to end the day with gains of a percent.

The index consolidated in a range in today's session post some recovery from the support of 8800. The overall market breadth was in favor of advances as except IT, stocks from most of other sectors witnessed some positive momentum. The index now seem to be undergoing a consolidation phase amidst a stock specific action in the broader market. For the near term, 8800 is the crucial support to watch whereas 9260-9320 is the immediate resistance zone. During such consolidation, traders should adopt a strategy to look potential outperforming counters and take a stock specific approach. A move beyond the above mentioned range of 8800 - 9320 could then lead to some directional move. The Banking index had under-performed in this pullback move so far which has immediate resistance around 20325. A breakout above the same is required for some quick recovery to catch up for the recent under performance."

Source : Equity Bulls

Keywords