Tail end surge pulls index marginally in the green

By Sameet Chavan, Chief Analyst – Technical & Derivatives at Angel Broking
Today’s session started on a sluggish note owing to mixed global cues. As the day progressed, the index extended its losses a bit due to some profit booking in the few heavyweights. However post the mid-session, the sudden buying emerged at lower levels which pulled the index higher to conclude the session with a negligible gain in Nifty.
The kind of corrective move we were witnessing in the first half today, by no means it should be considered a major fall or a sign of caution. The market has seen a steady up move recently and in the process has managed to clock fresh record highs, so such in between breathers are very much evident. Rather it should be considered a healthy sign. In our previous commentary, we had mentioned a key support around 15430 – 15400 and if we look at today’s recovery, it has come precisely after nearing this support zone. We continue to remain upbeat as long as we do not witness a major trend reversal and until then one should use intraday dips to go long in the market.
As far as support levels are concerned, 15430 – 15400 has now become a sacrosanct zone; whereas on the flip side, 15660 – 15700 are the immediate levels to watch out for. From here on, index specific trades are not going to be smooth and in fact, one needs to be very selective when it comes to stock specific trades as well. We reiterate on avoiding aggressive bets and it’s advisable to follow a proper risk management.