10405 becomes a sturdy wall: Angel Broking

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

"Markets opened today on a flat note owing to subdued start in Asian bourses with a mildly negative bias. The Nifty consolidated throughout the first half by strolling around the 10400 mark. However, as expected, the index once again came off sharply during the penultimate hour to conclude the session with a cut of nearly three tenths of a percent.

If we closely observe today's price action, it was almost a replica of Friday's move and once again, yet another valiant attempt to surpass 10405 turned unsuccessful. The more Nifty refuses to sustain above a particular level, the stronger it becomes and hence, 10405 has now earned a tremendous respect from the bulls. If we look at the hourly chart, we can see a possibility of 'Double Top' formation precisely at the 78.6% retracement of the recent down move. Going ahead, we continue to see 10405 as an important hurdle and on the downside, any move below yesterday's low of 10340 would result into further weakness.

Since, we are now approaching current month expiry, we expect volatility to pick up and hence, one needs to be very selective while entering into a trade."

Source : Equity Bulls

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