Optimism back on the street, Nifty gearing up for new highs: Angel Broking

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

Technical Outlook

Finally, after few days of pain, the bulls had something to cheer for. The benchmark index opened slightly higher in-line with other Asian peers and then went on to give a vertical rally throughout the remaining part of the day to conclude the session almost at the highest point of the day with more than a percent gains.

As stated in the previous articles, 9120 - 9100 provided a strong support for our market and clearly, the 'RSI' oscillator which was poised for a bounce back from the 50 mark provided impetus for today's optimism. Looking at last week's price action, 9200 seemed to be a stiff hurdle at least in the expiry week; but, market has given full justice to a famous quote 'Trend is your friend'. On the opening day of the week, this resistance has been violated convincingly; bringing strong interest back into the market. We would stick to our directional optimistic stance on the market and expect the stock to continue this northward rally towards 9247 - 9274 in coming days. Technically speaking, the Nifty has confirmed a breakout from the 'Trend Line' resistance of 9200 on hourly chart, which certainly augurs well for the market. Going ahead, 9184 - 9160 are likely to provide a decent support for the index.

Source : Equity Bulls

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