Risk reward Ratio favorable for fresh longs, uptrend to resume soon: Angel Broking

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

Technical Outlook

The Nifty index opened today's session marginally negative and traded with negative bias throughout the session. The index eventually ended the session with a loss of 0.69 percent over its previous session's close.

After a positive momentum during last two trading sessions of the previous week, the Nifty index corrected in today's session as the market breadth during the day was in favor of the declines. However, the index continues to trade around the support zone of 8975-9020 which is the support zone according to the gap created on 14th March. We reiterate that since the broader trend of the index is up, traders should use this decline as a buying opportunity and anticipate the resumption of the uptrend soon. Once the index resumes the uptrend, we expect the index to head higher towards 9400 - 9600 (price extension of the previous upmove from recent low of 7893.80) over the next few weeks. The chart structure remains positive as long as 8850 remains unbroken on a closing basis.

Source : Equity Bulls

Keywords