Nifty resumes momentum post some consolidation: Angel Broking

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

"The U.S. markets ended with gains of over a percent and the Asian markets too were trading with a positive bias in morning. These positive cues from the global markets led to a gap up opening in Nifty to continue to post new record and end with gains of over 100 points at 13683.

Nifty broke last four sessions of consolidation with a gap up and it rallied to almost test the 13700 mark. The broader markets continued its move in the direction of the trend, however the banking space looked tired and it underperformed the benchmark throughout the day. As mentioned in our yesterday's outlook, the 127% retracement of the previous correction on the Nifty weekly chart comes around 13750-13770 which would be an important zone to watch. Traders are advised to prefer to book profits on longs around these levels and be observant for further cues from the market. Though, there are no signs of reversal yet and hence, trading with a stock specific approach and avoiding aggressive positions seem to be a better strategy at these elevated levels. The intraday supports for Nifty are placed around 13600 and 13575."

Source : Equity Bulls

Keywords