Profit booking move likely to extend: Angel Broking

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

"Our markets had a soft opening today on the back of sluggish cues from the global peers. However, all of a sudden, we witnessed a sharp correction in our market after the initial 15-20 minutes of trading. The Nifty tumbled more than 100 points within a blink of an eye, which certainly is a notable development. Despite some attempt to recover in the midst of the session, the Nifty eventually closed below the 10000 mark.

We have been advocating booking profits in the recent rallies with an anticipation of some probable correction. The index has already given a decent rally in last three weeks; but now, due to today's price development, we can see some signs of weakness. The 'RSI-Smoothened' on daily chart has turned downwards after resisting around the trend line level of 90. In addition, the Nifty has managed to close below the hourly '89-EMA' level of 10000. Considering all these evidences, we expect this profit booking move to extend towards 9920 - 9870 levels. On the flipside, any intraday attempt to bounce back towards 10020 - 10050 is likely to witness a strong selling pressure. Traders are now likely to get better trading opportunities in individual stocks in both directions and hence, one should be very watchful while picking a stock."

Source : Equity Bulls

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