13150 - 13100 becomes a sacrosanct support now: Angel Broking

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

"After yesterday's brutal knock, our markets opened higher on the back of smart overnight recovery in US bourses. Within a few minutes of trade, index lost its lead and slipped inside the negative territory to test the sub-13200 levels. However, the second half turned out to be excellent for our markets as we witnessed v-shaped recovery to eventually close with more than a percent gains tad below the 13500 mark. IT stocks were the real charioteer in today's late surge as they once again came for a rescue.

Since yesterday's correction was a part of strong Bull Run, we didn't have any major follow through selling today. In fact, the initial selling easily got absorbed and as a result, we witnessed a broad based recovery in the latter half. In our sense, for the next couple of days at least, the index is likely to remain in a slightly wider range before deciding its next path. The ideal range would be 13600 to 13100, where the lower range should be seen as a sacrosanct support, which is the '89-EMA' level on '180-minutes' chart. On the higher side, if Nifty has to regain strength, it needs to surpass 13550 - 13600 with participation of few marquee heavyweights, especially from the banking space.

For the coming session, the intermediate supports are placed at 13396 - 13342 - 13266. Since the last few days we have been a bit cautious and we continue to remain so; but traders can now opt to stay stock specific, where we are likely to see trading opportunities on both sides. As far as sectors are concerned, IT stocks continue to attract buying interest and they are expected to do well in the coming session as well. Apart from this, few stocks from the 'Oil And Gas' universe have reached their support and are likely to see some bounce back moves."

Source : Equity Bulls

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