Some profit taking at the psychological mark of 12000: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Trading for the week started with a good upside gap as indicated by the SGX Nifty early in the morning. Within the first five minutes of trade, Nifty conquered the milestone of 12000, which is the outcome of the stupendous recovery from the March lows in such a short span. In fact, in the last couple of weeks also, we had a remarkable rally after testing the 200-day SMA around 10800. Post the initial hour, the market witnessed some profit booking at higher levels, which was then followed by a consolidation to conclude the day on a flat note.
Today, for the first time in the last few trading sessions, the bulls looked a bit tentative at higher levels, especially in the banking space after a strong close on Friday. The prices were extremely overbought and since the recent move was swift, some in between profit booking was very much on cards after reaching the psychologically level of 12000. This is what we had mentioned in the weekly article that one should avoid chasing prices now and should wait for intraday dips to create positions. Today's move as of now should only be construed as a profit taking and not the complete reversal. As far as levels are concerned, 11867 - 11800 should be treated as a support zone; whereas on the higher side, 12000 - 12050 are the levels to watch out for.
Addition to this, we would like to draw attention towards the movement in the Nifty Midcap index. This space saw some decent profit booking today and is the only factor missing to make the recent rally as a healthy one. The midcap index is placed at a crucial juncture and till the time it does not surpass its recent congestion zone, traders are advised to be very selective in stock specific trades."