IGI Logo

Below are Views On Extended profit taking drags Nifty towards 15200 By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

“Markets had a slightly weak start today as indicated by the SGX Nifty. During the initial hour, the correction extended to test the 15200 mark. However, immediately in the subsequent hour, we had a v-shaped recovery to recoup all gains to move towards yesterday’s close. Market then consolidated for some time before resuming the downward move at the stroke of the mid-session. In fact, the weakness persisted towards the fag end to close almost at the lowest point of the day.

Since last couple of days, we have been advocating some caution after reaching a crucial resistance zone of 15380 – 15500 (which is the 161% ‘Golden Ratio’ of the entire fall from Jan’20 highs to March’20 lows). Yesterday, we had a minor profit taking from high which extended today to reach key support of 15200. Going ahead, one should keep a close eye on how market behaves around this level; because a breach of 15170 – 15150 would lead to further correction towards 15075 – 15000 levels. On the flipside, 15245 – 15315 will now be seen as intraday hurdles.

Traders are continuously advised to remain a bit cautious at higher levels and should start lightening up positions in the rally. Although, individual stocks are still performing well; it’s a daunting task to pick out such outperformers from the broader market.”

Above views are of the author and not of the website kindly read disclaimer