Tug of war near record highs, focus on individual stocks: Angel Broking

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

"After taking a breather for couple of days post the RBI policy, our markets started proceedings on a muted note. In the first half, we witnessed trading with a mildly negative bias; but, a strong broad based buying interest in the latter half pulled the index higher to reclaim the 10050 mark on a weekly closing basis.

If we look at the hourly chart, we can clearly see that the index rebounded after precisely testing the '89-EMA' level of 9987. Such kind of volatility or tug of war between two counterparties is quite obvious at historic highs. We expect the index to remain within a range of 10150 - 9944 for a while and hence, one should ideally continue focusing on individual stocks that are offering much better trading opportunities.

Technically speaking with a slightly broader perspective, the Nifty has now reached the 'Upward Sloping Trend Line' level of 10060 which coincides with the 100% 'Price Extension' of the previous up move from 7893.80. Hence, we reiterate that one should remain light on positions and as mentioned in the above section, should concentrate on stock centric approach with a proper exit strategy."

Source : Equity Bulls

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