Nifty reclaimed 8600 - don't expect reversal soon, better to ride the tide: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking

Technical Outlook

It's been a remarkable day for our markets; in fact, we should say last three days, as the Nifty eventually reached the 8600 mark in a blink of an eye. We saw a gap up opening today around 8500 and the market then just took off right from the word go. A good broad based rally ended the cheerful session tad above 8600 by adding one and half a percent to its previous close.

The Nifty has now reached our recent target of 8600; however the velocity of last three days move has been really spectacular. Now, as mentioned in our earlier articles, the overall technical structure is so strong on all time frame charts. Thus, undoubtedly, we would continue with our optimistic stance on the market and would use all minor dips to create fresh longs in the market. It's quite possible that we may see profit booking or breather in coming days, but traders shouldn't expect any major reversal soon. The trend is quite strong and one should look to ride this tide. For the coming session, 8560 - 8500 would now be seen as a strong support zone; whereas on the higher side, a move towards 8678 - 8737 is clearly visible now.

Source : Equity Bulls

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