Consolidation continues within a tight range: Angel Broking

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

"The global markets witnessed some correction and in line with that, SGX Nifty was hinting at a probability of negative opening. However, the indices opened on a flat note and then corrected in the first couple of hours upto 13450 mark. But once again, the intraday day dip got bought into and we then witnessed a smart recovery in the later half to erase all losses and end the day on a flat note.

Once again our markets shrugged off the negative global cues and witnessed a smart recovery from the intraday dips. In the last couple of hours, we witnessed a decent upmove with certain high beta stocks posting good gains. For the fourth straight session, we have witnessed such a move where markets recovered from their lows and ended with formation of 'Doji'candle. Although this does not sign any reversal of the trend, 13400-13600 now becomes a crucial range and a breakout beyond the same would then lead to the next leg of directional move. A move above 13600 could then lead to an extension of this trend towards 13750 which is the 127% retracement levels of the previous correction on the weekly charts. On the flipside, 13400 has now become a sacrosanct and only a breach below this would then result into a decent profit booking. We continue with our advice for traders to trade with a stock specific approach with a tab on the above mentioned levels in the index."

Source : Equity Bulls

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