9580 earned respect, one more attempt to test 9700 seems possible: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

Technical Outlook

Our markets opened tad higher as indicated by the pre-opening session. However, quite similar to recent days, this early morning lead got sold into. The second half was slightly encouraging for the bulls as we witnessed a modest recovery from day's low to conclude the session tad above the psychological level of 9600.

We have been mentioning about the crucial support of 9580 since last few days. If we look at today's low, the Nifty precisely reversed after posting a low of 9580.45. On the hourly chart, this support coincides with the small 'Downward Sloping Channel', which actually depicts recent trading range for the index. Going ahead, we maintain our view that the index is likely to make one more attempt to move towards 9700 - 9720 levels, which we believe would be an exit opportunity for short term traders. On the flip side, 9580 remains to be a strong support level. Traders should continue with their stock centric approach and avoid taking undue risks.

Source : Equity Bulls

Keywords