Below are Quote on The market breadth was positive and just when it looked that the index is geared to surpass that hurdle by Mr. Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking Ltd
“Nifty started the session marginally positive and inched higher towards the 15800 mark around noon. The market breadth was positive and just when it looked that the index is geared to surpass that hurdle, it took a U-turn and declined sharply. Before anyone could realize, Nifty corrected almost 200 points from the high and then even entered sub-15600 level. With a mild recovery from intraday low, Nifty ended the day with a loss of over 100 points at 15635.
The markets looked quite firm till noon, as the breadth was firmly positive with a broad market participation. However, it witnessed some shakeout post mid-session as some profit booking led to a sharp decline from the highs. In our recent market outlook, we have been mentioning about the importance of the resistance zone of 15770-15800 for Nifty as it is the 127% retracement of the recent corrective phase. Market have rallied one way in last three weeks and hence, some profit booking around such important resistances are generally encountered. Also, recently the hourly ‘20 EMA’ was acting as a support on intraday declines in Nifty and the prices breached that support and ended below it yesterday. However, this should not be taken a sign of any trend reversal and it should be read just a correction within an uptrend.
With spike in intraday volatility, it could be difficult for day traders to gauge the direction on the weekly expiry day and hence one should avoid aggressive positions. The immediate support for Nifty is placed in the range of 15500-15450 while resistances will be seen around 15700 and 15800.”
Above views are of the author and not of the website kindly read disclaimer