Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking.
It seems that our markets have slipped into a consolidation mode post the event and this is what we generally see after a big gap up or gap down. In technical terms, we can call it as a 'Time-wise Correction'. Today's session opened flat in-line with global peers and subsequently, the benchmark index remained in a thin range of 31 points throughout the day, which is hard to see. Eventually, the Nifty ended the session almost at previous close by posting yet another close well above the 9000 mark.
This lethargic price action was quite likely as we generally see immediate reaction once the event gets unfolded and then some consolidation in following days. Since there is no major change in the chart structure, our bullish view remains intact. We would continue to remain upbeat on market and expect the Nifty to keep marching higher, first towards 9200 and then towards our near term target of 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. On the downside, today's gap area of 9060 - 8975 would act as a strong support zone. Any dip within this range should be used to create fresh longs in the market without any hesitation of being an overbought territory.