Some respite after yesterday's sell off: Angel Broking

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

"After yesterday's sell off, our markets opened higher as the global rally is still on and today morning. DOW future was trading firmly in the green. Post the positive start, our markets saw few volatile swings during the day; but when it comes to the individual stocks, we witnessed smart recovery in a number of counters.. Eventually, the index ended the session with nearly a percent gain.

Yesterday's sharp fall might have shaken so many market participants and it has certainly applied brakes on the recent euphoria. Fortunately for us, there was no follow through selling seen today and the NIfty successfully managed to defend the crucial support of 11325. Since, yesterday's correction is the profit booking move of a strong Bull Run, markets have still not distorted their structure. So, as long as 11325 is defended, the momentum traders would still have some hopes of a recovery. If any weakness has to trigger, it will happen only after breaking this crucial point. However on the higher side, we do not expect Nifty surpassing yesterday's high soon. Meanwhile, it would be a daunting task for the Nifty to surpass the sturdy wall of 11550-11650. Let see how things pan out in the next couple of days, which would possibly give some idea of the next path of action.

Going ahead, we continue to advocate some caution and one should avoid aggressive bets, considering the rise in volatility, Till the time we are stuck in a range of 11325 - 11650, we are likely to get trades on both sides and hence, swings traders can capitalise on such higher volatile moves."

Source : Equity Bulls

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