Nifty reclaims 14500, but still not completely out of the woods : Angel Broking
(Time Zone: Arizona, USA)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Nifty started the day marginally positive and approached the level of 14450 in the first hour of the trade. This level coincided around the previous support which now was the immediate resistance. The index hesitated there and pared the gains before noon itself to sneak below 14300. The index consolidated for a while in a range and when it looked that the market was unable to sustain at higher level, the index once again made an attempt to surpass the morning highs. With the help of the Banking and Financial space, Nifty rallied sharply in last couple of hours and ended the day tad above 14500, marking gains of almost 200 points.
We have already seen a week full of action in a couple of sessions with indices showing sharp swings on both the days. Nifty breached its short term support yesterday, but it reclaimed the 14500 mark at close today. The sharp recovery certainly seems enticing, but still we advise not to get carried away as we may still not be out of the woods. The bearish gap area and the '20-day exponential moving average' at 14650-14700 remains a sturdy wall which could be difficult to surpass immediately. On the flipside, the '89 DEMA' has played its role well as of now as Nifty did not breach that and yesterday's low almost coincides with that support. With above-mentioned levels on the tab, traders should look to lighten up longs on pullback as the index approaches its resistance zone."