Some hint of real of profit booking, market still defends key support: Angel Broking
(Time Zone: Arizona, USA)
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Despite SGX Nifty indicating a flat start early in the morning, our markets opened with a decent upside gap at record highs well above 14600. In the initial trade, Nifty marked a new high of 14653.35 and then consolidated for some time. However, post the midsession, the selling augmented in the market and within a span of few minutes, Nifty was well off morning high. Fortunately, we witnessed a smart recovery towards the fag end to conclude the day on a flat note.
Since last couple of days, although the broader market kept buzzing, we observed profit booking in individual stocks. Today, the profit booking mode was seen in so many counters, which weighed down heavily on the market and thus market had a decent decline during the day. But similar to recent trend, 2.30 factor once again played out well in the market, which helped the market erase its losses completely. Overall it was a day with some decent roller-coaster move and fortunately due to sheer outperformance from few banking heavyweights, markets are back to safe terrain. This is what we have been referring since few days, it's not going to be easy ride anymore for traders and one needs to be prepared for such higher volatility.
With today's move, 14650 has become an immediate resistance; whereas on the lower side, last two day's low of 14430 has now become a crucial point. Any sustainable move below this level would provide first sign of weakness. Also, we would like to highlight some typical behaviour of the market. Since last few days, we are seeing some intraday dips and those declines are getting comfortably bought in the last one and half hours of strong buying mode. Whenever we see this behaviour reversing, traders should immediately lighten up longs."