Below is the Views On Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking)
“Post the correction from its high in yesterday’s session, our markets opened marginally negative today. The index traded with a negative bias till noon as the Banking and Financial stocks corrected. The index heavyweight Reliance Industries too corrected sharply which led to a dip in Nifty towards 9040. However, in the later half, the banking space recouped its intraday losses and hence, Nifty too recovered from the lows to end the day tad below the 9200 mark.
Since last few days, we have seen a consolidation phase in the index and the Nifty approached the support end of the range today. Thus, a pullback move was seen in the later half which is indeed a good sign for near term. In our recent reports, we have been mentioning about 9100 being an important support for the index. Although it was breached during the day, the recovery from the lows which coincide with the ‘200 SMA’ on the hourly chart still provides a hope for the market. Infact, in such consolidation phase, buying near the support and selling near the resistance is an apt strategy which provides good risk reward ratio for swing traders. Thus, looking at current scenario, traders are advised to avoid taking contra call and look for stock specific buying opportunities from a short term trading perspective. The range of 9100-9000 is the support range for this consolidation phase whereas resistance is seen around 9450.”
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