Consolidation continues in the market, directional traders should use dips to form fresh longs: Angel Broking

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

Technical Outlook

The new trading week started on a flat note citing mixed global cues. However, it was quite surprising to see that our markets extended Friday's corrective move that we saw after hitting a new high of 9218.40 after US dollar index slipping towards the 100 mark. Due to decent stock specific profit booking, the Nifty eventually ended the session with 0.36% loss to its previous close.

At this juncture, we are just seeing traders looking to take some money off the table after enjoying this relentless up move in the recent past. There is no sign of trend reversal yet and hence, can be construed as a breather or a pull back before starting the next leg of the rally. It's difficult to make a time-wise prediction; but price-wise, we continue to expect the Nifty to head towards 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we in last two days) by momentum traders cannot be ruled out. On the lower side, 9100 - 9050 levels would provide a strong support in the forthcoming week. Traders are advised to keep using such dips to create fresh longs in the market.

Source : Equity Bulls

Keywords