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Below are Quote on Market Wrap Up - Midcap index struggles at crucial juncture, use bounce to lighten up by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

“Markets had a nervous start today owing to sluggish cues from the global bourses. In the initial trade, it attempted to move higher but failed to sustain as it approached the 15900 mark. This led to a decent profit booking in the subsequent hour. The corrective move seemed to have arrested around the midsession and in fact, market made one more attempt to rebound in the latter half. However, a tail end correction across the board dragged Nifty at its lowest point of the day. Eventually, Nifty ended the session with more than half a percent cut to close tad above 15750.  

Since last couple of days we have been advising on booking profits and staying light in the market. The way market is behaving around 15800 – 15900, the strength is clearly missing. Also if we take a glance at the NIFTY MIDCAP 50 index, it is struggling around the crucial juncture (as it’s placed around the key Fibonacci ratios). In fact today’s weakness in the broader market is clearly hinting towards some sort of profit booking in the near term. Hence we continue to remain cautious and advise traders to stay light on positions.

As far as Nifty is concerned, 15820 – 15900 to be seen as strong resistances; whereas on the lower side, 15700 is to be considered a crucial support. For the weekly expiry session, we would advise traders existing longs and aggressive traders can opt to short as well if we see Nifty around 15820. If the selling happens as per our expectation, the possibility of breaking 15700 increases, which could then lead to some extended correction in the following sessions.”

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