Nifty reaches 13400, but overall choppy day for index: Angel Broking

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

"We had a gap up opening today at fresh record highs around 13400. During the mid session, the market erased almost all gains on the back of some profit booking in some of the heavyweights. However in the latter half, few big boys like Reliance and IT giants pulled the market higher from lower levels to end the session marginally in the green.

Market continues its dream run and it's one of such rarest phases when it just refuses to fall and keeps giving the gravity defying move. As we have been mentioning for a few days, although it's always a soothing factor for the market not correcting; but at the same time, there will always be a hanging sword of the market surprising with a sudden correction any time. Hence, to be on the safer side, we are advocating booking profits in the ongoing rally. As far as levels are concerned, 13450 - 13500 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13300 - 13250 now. A move below this support zone would result in an extended correction.

Today, apart from some of the bigger names, the entire PSU banking basket just took off. In the recent past, a lot of long time laggards have also moved, so it was the day of underperforming banking space to show their presence as well. Traders are advised to be stock specific but again avoid aggressive overnight bets."

Source : Equity Bulls

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