Index consolidates amidst stock specific momentum: Angel Broking

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

"On the back of positive global cues, Nifty started trading for the week with a gap up around the 11250 mark. However, the index gave up the opening gains in the first hour of trade and corrected by about 100 points from the opening level. It then consolidated for most part of the session and recovered gradually to end the day around the opening levels.

It was another day of consolidation in the index while stock-specific action from the broader markets provided good trading opportunities. During fag end of last week, the index tested its important support of 11100 which is the '20 DEMA' as well as a neckline of a Rising 'Head and Shoulders' pattern . A breach below 11100 could then lead to some decent profit booking and hence, traders are advised to keep a tab on the same. Also, since last few days, the bulls are struggling to surpass the 11300-11370 zone which is the crucial resistance. Thus, till the index is locked within this range of 11100-11370, traders should focus on stock specific moves and capitalize on such opportunities. Also, one should be agile on the exit strategy on trading positions until we see a breakout from the range."

Source : Equity Bulls

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