Index enters consolidation phase, 11990 key supports: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"On the back of muted global cues, our markets started trading for the week on a flat note. However, we witnessed a gradual correction during the day and Nifty ended the day with a loss of over half a percent.
Post the recent sharp recovery, our market seems to be undergoing a consolidation wherein the index has formed a support around the 12000 mark whereas 12200-12250 has been a resistance. As of now, it seems that the index would trade within this range in the near term and only a breakout beyond the same could then lead to a directional move. In last three sessions, we have already seen some correction and the index is now closer to the lower end of the mentioned range. Hence, we may again see some pullback move from the support which is placed at 11990.Traders are advised to adopt a strategy to buy near the support end and exit longs near the resistance zone.
From the broader markets, stocks which are witnessing price up move with higher volumes than their respective average are providing decent outperformance and short-term traders should look to trade in stocks with such set-ups for decent short term returns."