Wednesday 4 April 2018

Global worries resulted into a liquidation of recent positions: Angel Broking

Newspatrolling.com : “Today, our benchmarks opened marginally higher and then consolidated within a small range throughout the first half. However, we witnessed a complete nosedive in the late afternoon after some fresh worries arising on the global trade war. Eventually, a sustained selling resulted into a sharp cut of more than a percent from its previous close.
 
At one point in the morning, the Nifty was trading well above the higher boundary (10250) of ‘Falling Channel’. Obviously, the daily close was essential to fulfill requirements; but, looking at the intraday momentum, a possibility of this relief rally getting extended was quite high. But, as always market surprises, once again some negative developments on the global front spooked traders to liquidate their recent positions. For the coming session, the immediate hurdle is placed in the zone of 10187 – 10230; whereas, on the downside, last Wednesday’s low of 10096would be seen as a crucial support. Any sustainable move below this would reinforce selling pressure to test 10049 – 10000 levels.
 
However, if we take a close look of top 6 – 7 heavyweight constituents, it does not indicate immediate correction from current levels. Hence, in case, if this correction extends, this would probably once again be a weak attempt of fall. Considering all these uncertainties, traders are advised to stay light and ideally should continue to follow stock specific approach.”

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