Published on 9/06/2021 5:04:50 PM | Source: Angel Broking Ltd

Market Wrap Up - Market witnesses some shakeout post mid session by Mr. Ruchit Jain, Angel Broking

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

Below are Quote on Market Wrap Up - Market witnesses some shakeout post mid session by Mr. Ruchit Jain, Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

Nifty started the session marginally positive and inched higher towards the 15800 mark around noon. The market breadth was positive and just when it looked that the index is geared to surpass that hurdle, it took a U-turn and declined sharply. Before anyone could realize, Nifty corrected almost 200 points from the high and then even entered sub-15600 level. With a mild recovery from intraday low, Nifty ended the day with a loss of over 100 points at 15635.

The markets looked quite firm till noon, as the breadth was firmly positive with a broad market participation. However, it witnessed some shakeout post mid-session as some profit booking led to a sharp decline from the highs. In our recent market outlook, we have been mentioning about the importance of the resistance zone of 15770-15800 for Nifty as it is the 127% retracement of the recent corrective phase. Market have rallied one way from in last three weeks and hence, some profit booking around such important resistances are generally encountered. Also, recently the hourly ‘20 EMA’ was acting as a support on intraday declines in Nifty and the prices breached that support and ended below it today. However, this should not be taken a sign of any trend reversal and it should be read just a correction within an uptrend. With spike in intraday volatility, it could be difficult for day traders to gauge the direction on the weekly expiry day and hence one should avoid aggressive positions. The immediate support for Nifty is placed in the range of 15500-15450 while resistances will be seen around 15700 and 15800.

Nifty started the session marginally positive but it corrected from the opening level and entered sub 15700 in the first hour of the trade. However, the index then recovered from its lows and ended the day marginally in the red around 15740.

The index is trading around its resistance of 15770-15800 which we had mentioned about in yesterday's market outlook. Nifty corrected initially led by the banking space but once again, the ‘20 EMA’ on the hourly chart provided support to the index and it recovered gradually from that support. The market breadth continued to remain positive, however, a lot of sector rotation was seen today since the banking space took a backseat. The defensive sectors witnessed buying interest with IT leading the momentum in the morning trade, then some FMCG stock witnessed interest and at the end, the Pharma stocks made a comeback. This indicates that while the uptrend continues, some time correction/consolidation at the crucial juncture is seen and the momentum seems to be shifting to the above mentioned sectors. As far as levels are concerned, the immediate supports are placed around 15670 and 15600 while resistance is seen in the range of 15770-15800. A move above 15800 would then lead to a resumption of momentum in the index towards 16000.

Looking at the change of momentum between the sectors, traders are advised to focus on stock specific trades from the mentioned sectors where we could see some relative out performance in the next couple of sessions. 


Above views are of the author and not of the website kindly read disclaimer