Market slips into a consolidation mode, 9100 defended successfully: Angel Broking

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

"Last week, we had some encouraging moves in the market and in the process, the Nifty took a leap beyond the 9800 mark. However, with US President Donald Trump threatening China on hiking tariffs over the weekend, spooked market participants across the globe. As a result, we had a huge gap down opening on Monday, which was mostly followed by a consolidation throughout the remaining part of the week. Eventually, the Nifty ended the week tad above 9200 by shedding over 6% as compared to the previous weekly close.

Although, it appears to be a sharp cut when compared to previous week's close, the overall trading action during the week was muted. In fact, the last couple of trading sessions' price action was extremely lethargic and the market completely looked directionless. Neither Bulls had the strength to overcome the sturdy wall of 9400-9450 nor Bears were dominant enough to violate the 9100 mark. Hence, for the coming week, 9450 to 9100 remains to be an immediate range. Only a sustainable breakout on either side would confirm the next path of action. Traders holding existing longs should maintain their positions as long as 9100 is successfully defended.

At present, traders are advised to stay light and should ideally continue focusing on individual stocks. Although we are completely not out of the woods when it comes to Coronavirus Pandemic, we remain hopeful till the time key support mentioned is not violated. Once we see Nifty surpassing the higher boundary of 9450, we would see a good broad-based participation in the market."

Source : Equity Bulls

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