Some profit taking at 9000: Angel Broking

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

"After a stupendous rally on Tuesday, our markets opened lower on the back of sluggish cues from the global bourses. However, after the initial hiccup, index stabilised and then resumed it's upward trajectory. In fact, at one point, the buying momentum turned into an euphoria. In the process, Nifty not only hastened towards 9000 but also went on to surpass the 9100 mark. However, with DOW futures cooling off from highs, our markets too witnessed a nosedive in the latter half to eventually pare down all gains and ended the day with a half a percent cut.

Barring today's profit taking from higher levels, last couple of sessions have been excellent for markets across the globe. Some of the beaten down stocks rebounded quite sharply, giving some sigh of relief for trapped traders in the recent past. In our previous article, we had mentioned possibility of extending this pull back rally towards 9000-9050. Although, index surpassed this zone due to euphoric situation; but eventually it acted as a stiff hurdle. With today's roller coaster move, the daily candle indicates uncertainty and hence, the coming session would be quite crucial for our markets. On the higher side, 9000-9100 remains to be a study wall now and on the flipside, we may see weakness below 8650.

Traders are advised to keep a tab of above mentioned levels and should ideally follow a stock centric approach. Amongst the notable movers, the Pharma space continues its recent dream run and this is probably a beginning of ending the 5-year bear phase."

Source : Equity Bulls

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