Avoid longs, 9960 - 9990 to act as a stiff hurdle: Angel Broking

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

"Yesterday's strong corrective move was followed by a gap down opening in our market on the back of mounting geopolitical concerns between US and North Korea. Our markets remained under pressure for the major part of the session and in the process, have managed to sneak towards the 9900 mark.

With reference to earlier article, some of the technical tools started indicating this weakness and as expected, today we saw extension of yesterday's corrective move. Now, due to today's correction, the Nifty has closed below the daily '20 EMA', which certainly does not bode well for the bulls. In addition, the 'RSI-Smoothened' on daily chart has now even slipped below the 70 mark, providing impetus for further weakness. Looking at this set up, traders are advised not to create longs in the index and in fact, use any bounce back towards 9960 - 9990 to move out of existing positions. On the flipside, this corrective move is now likely to extend towards 9870 - 9820 levels. One of the notable observations is that the individual stocks have now started experiencing massive profit booking and hence, traders are advised to be very cautious and needs to be selective while picking a stock."

Source : Equity Bulls

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