New high again for Nifty, ends around 14650: Angel Broking
(Time Zone: Arizona, USA)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"The Nifty index opened on a positive note and gradually moved higher during the day to register new highs. In just a couple of sessions, the index recovered all its losses of the recent correction and has ended the day tad below 14650.
The index continued its previous day's upmove today supported mainly by the IT heavyweights. The Auto stocks and the heavyweight Reliance Industries too contributed and participated in the upmove. Although, the Banking index consolidated in a range today and relatively underperformed the Nifty as no significant momentum was seen in the private sector banking stocks. If we look at the recent chart of Nifty on the daily time-frame, it is seen that the 20-day EMA has acted as a support on intermediate declines and the index has continued its 'Higher Top Higher Bottom' structure. With the last two days of upmove, this moving average support now coincides with Monday's low of 14222 and thus, it now becomes a sacrosanct for the short term. Apart from this, the Nifty Midcap index had seen some correction from its important level as per the retracement theory and hence, it would be crucial to see if this index surpasses its swing high with an ease. In case the midcap index does not break this hurdle, then we could see some volatility again in the short term and hence, traders should keep a close tab on this index. Meanwhile, we continue with our advice for traders to keep focusing on stock specific moves and identify the sectors which are showing momentum on a given day. Traders should also avoid taking leverage positions at this juncture and focus on timely exits on the trading positions. The intraday supports in Nifty for the coming session are placed around 14535 and 14490 whereas resistances are seen around 14710 and 14770."