Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"For the seventh successive session we had a gap up opening in our market, owing to strong positive cues from the global peers. In the initial half an hour of the trade, our benchmark Nifty clocked a fresh record high by a slender margin. In fact, it was not even by a single point and did not last too long as well. This was followed by some consolidation before index taking a nosedive in the penultimate hour not only to wipe off all gains but also to close in the negative territory by losing six tenths of a percent to the previous close.
Looking at today's price action, our market seemed to have given some reality check to those who became gung ho after index surpassing previous highs. By saying this, we certainly do not mean that it's a change of trend. The bias still remains bullish but one needs to understand that since we are at such elevated levels, traders should not become too complacent and enter at any level. We still believe that it's a matter of time we would see new highs soon (on a sustainable basis). Now, with today's sharp decline, Nifty has precisely filled the gap created on April 01 and also retested '5-day EMA'. For the coming session, 11620 followed by 11570 would be seen as immediate supports. Any decline towards these levels is likely to get bought into and hence, we still continue with our buy on dips strategy. On the higher side, 11700 - 11760 are the levels to watch out for.
The pragmatic approach at this juncture remains to be a stock specific one. Traders should identify stocks that have corrected back to their supports after confirming breakouts recently and should capitalize on the same."