Profit booking seen in last hour of trade: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Post opening on a flat note, Nifty traded in a narrow range for most part of the session today. However, it corrected sharply in the last hour of the trade and ended the day with a loss of about a percent.
In last couple of sessions, the Nifty has traded in a narrow range while the Bank Nifty has shown relative outperformance. As highlighted in our earlier report, post the recent sharp run up, Nifty has now approached the resistance zone of 10800-11000 which coincides with the '200 DMA'. In the last hour today, the index witnessed a strong bout of profit booking and the BankNifty index too gave up all the day's gains from its resistance zone. Near the important resistances, such bouts of profit booking are much expected and hence, we have been advising recently to avoid aggressive positions. The coming session would be crucial where 10630-10700 would be the support and if this gets breached, then we could some extension of profit booking towards 10500. On the flipside, 10850-11000 continues to be the resistance zone.
In the first half today, there were many stocks which continued to provide good trading opportunities. Such opportunities may now not be easy to spot and thus traders are advised to be vigilant on the index movement tomorrow and avoid aggressive positions. However, having said that, we would also like to mention that as of now there are no signs of a trend reversal and next 2-3 sessions would be important to determine the near term trend."