Wednesday, 2 May 2018

Early signs of overbought situation: Angel Broking (Media partnered with : “After a gap of one day, our markets opened higher which was clearly not on expected lines considering the overall sluggishness across the globe. This gap up opening was merely a formality as index came off immediately from morning’s high and then remained under pressure throughout the remaining part of the day.
Today, if we just look at the index, we do not get the right picture. The Nifty corrected hardly 70 - 80 points from highs, but the way some of the individual stocks hammered is certainly not a good sign. There were many casualties seen in the broader market, hinting towards the overbought situation of the market. We reiterate that our recent bullish stance in index gets arrested around 10800 and hence, traders are advised to remain light and avoid taking undue risks. On the downside, 10680 would be seen as immediate support level.