A day of consolidation for benchmark: Angel Broking

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

"Post yesterday's breakout, Nifty started today's session with a gap up around the 11450 mark. However, it then consolidated within the range of 11460-11400 throughout the day and ended near the lower end of the range.

After a positive opening, the index slipped into a consolidation mode today as there was no significant movement seen within the large cap space. However, the overall market breadth was robust as the midcap and the small cap stocks continued with the upmove and provided good trading opportunities. In yesterday's report, we had mentioned that since the Nifty has surpassed its swing high of 11370, the probable near term target is seen around 11465 and then at 11625. These levels are projected by taking reciprocal retracement of the recent corrective move from 11341 to 10882. Today, the index almost tested the first target zone which was the 127% retracement of the mentioned correction, but it did not surpass the same. It was mainly because the large caps seemed to have lost the momentum and it were the non index stocks where the momentum got shifted. Hence, the immediate resistance for the index is intact around 11465 and only if the index crosses the same, then Nifty would target the 161.8% retracement level which is seen around 11625. On the flipside, 11350-11300 is the immediate support for the index.

Stocks from the midcap and the small cap universe are on a roll and have been providing good returns to intraday and short term traders. We continue with our advise to capitalize on such opportunities where the price movements are supported by good volumes. However, such moves sometimes also create euphoric situation which is then followed by a healthy correction. Although there are no signs of reversal, traders should keep booking timely profits and avoid getting into much leveraged bets."

Source : Equity Bulls

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