Tuesday 14 November 2017

10223–10226 to act as a sturdy wall: Angel Broking

Best influen“For the second straight session, our markets remained under pressure and closed almost at the lowest point of the day. There was only one attempt made to recover in the penultimate hour; but we saw index failing to sustain around the 10220 mark due to decent supply around the hourly ‘200-SMA’.
 
Today’s corrective move was quite evident after seeing yesterday’s decisive close below the ’20-day EMA’. The impetus then was provided by the declining ‘RSI-Smoothened’; resulting into a fall below the 10200 mark. Now, as the time passing, we are seeing confirmation of various technical tools that are negatively poised and are hinting towards the extended correction over the next few days. Going ahead, 10223 followed by 10266 would act as a strong resistance and any bounce back in this zone is an opportunity to exit existing longs for the momentum traders. On the flipside, we would see index retesting lower levels of 10123 – 10054 in days to come. Traders are repeatedly advised to stay light on positions and avoid taking undue risks.
 
As far as sectoral bets are concerned, we remain upbeat on selective IT (especially Midcap IT) names along with some ‘Pharmaceutical’ and ‘Media’ counters.” 
 

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