Market clearly looks depressed, watch out for next level at 10770: Angel Broking
“We had a gap up opening today, owing to cheerful mood across the globe. However, the underperformance continues as compared to the global bourses and similar to previous session, today too, last one and half hour saw massive sell off. In the process, Nifty sneaked below the 10800 mark by shedding 0.35% from the previous close.
Clearly, our market looks depressed and such times can be extremely frustrating for traders as well as investors fraternity. So many individual stocks are just sinking day by day, which can be very intimidating at times. In our previous article, we had stated about 10850 being the sacrosanct level. This key support has been violated now and going ahead, we would be closely tracking how index behaves around 10770. A sustainable breach of it would lead to further correction towards 10700 or below. In the upward direction, 10840 – 10870 are the levels to watch out for. Although, we are precisely at 61.8% retracement of the recent up move and a formation of ‘Bullish Wolfe wave’ on hourly chart keeps us interested; but considering recent underperformance, it’s better to wait for a confirmation beyond 10870 in order to trigger some positivity.
Traders need to understand that we are typically in that sort of period when no analysis works, market does not respect any level and hence, everyone is left clueless about the direction. In such times, it’s always better to stay light and wait for clear signal to emerge.”