Below is the Views On Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)
“Last night US markets gave up its sizable gains and eventually ended slightly inside the negative territory. This resulted in some nervous start in our markets. However, the recent undercurrent has been extremely strong and hence, with global peers rising this afternoon, our markets too recovered from lower levels to reclaim the 11300 mark on a closing basis.
It is clear that the bulls are not willing to give up; but at the same time, it doesn’t not have enough strength to go beyond the sturdy wall of 11350-11400 as well. If we take a glance at the daily chart, we can now see a ‘Tri Star’ pattern. As the name suggests, it requires three consecutive small body candles in a specific position, where the middle candle is slightly higher than first and third candle. Taking this into consideration, we continue with our cautious stance on the market. If this pattern has to get confirmed, the Nifty needs to break below 11238, which will result in some immediate correction towards 11125-11064.
Since last few days, only the midcap universe has been buzzing and when it moves it certainly looks like an euphoric situation. So till the time, midcaps are offering better opportunities, one should keep capitalising on it; but we reiterate, aggressive bets are strictly not recommended and taking timely profits always makes sense to be on the safer side.”
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