9020 - 8975 to act as a sheet anchor, use dips to create longs: Angel Broking

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

Technical Outlook

We witnessed a gap up opening today after US markets taking some breather and importantly, the US Dollar index maintaining its position below the 100 mark. The buying interest was seen in the first and last hour of the session. As a result, the Nifty managed to trim major portion of yesterday's losses to end the session tad below the 9100 mark.

Today, we saw some respite after last 3 days of corrective move in the market. This was probably on cards as the market entered a strong support zone due to some corrective action after posting a new high of 9218.40 last Friday. With reference to previous article, we were expecting 9020 - 8975 to provide a strong support and very much on our expected lines, we witnessed a decent bounce in the market. We continue to remain upbeat on the market and would rather advise to utilize these dips to create fresh longs instead of going short on the market. It's difficult to give a time-wise prediction; but price-wise, we reiterate that the Nifty is likely to head towards 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Traders waiting for dips to initiate fresh longs post the UP election outcome should not get carried away by this pessimism. The chart structure remains positive as long as 8850 remains unbroken on a closing basis.

Source : Equity Bulls

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