Nifty approaches its crucial hurdle: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Nifty started trading with another gap up above the 11200 mark, however, the index corrected from the opening ticks in the first half an hour of trade. It then faced resistance during intraday pullback towards 11200 and corrected in the later half to register a low of 11060. Due to some recovery from the low at the end, Nifty registered a marginal loss and ended at 11132.60.
As the Nifty approached the 78.6% retracement level, it seemed that traders preferred for some profit booking as the index showed signs of boredom and corrected from the higher levels. However, the banking and the financial space kept the market on toes as some of the stocks from this space outperformed the broader markets which led to a relative outperformance in Bank Nifty. As mentioned in our previous article, Nifty is trading near the crucial hurdle and hence it is wise for traders to book profits and take some money off the table. However, as of now, there are no signs of reversal and hence, we do not advise taking any contra trades. Next couple of sessions would be crucial to determine the near term trend and traders are advised to trade with a stock specific approach and keep booking timely profits. The near term supports for the index are placed around 11040 and 10960 whereas resistance is seen in the range of 11200-11250."