Below is the Views On Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)
”Today's nervous start has more to do with the roller-coaster ride in US markets last night. They plunged severely from higher levels and hence, we reacted with a weak start which was then followed by a sustained correction throughout the remaining part of the day. The selling pressure was so strong as any minor attempt of a rebound was getting sold into. Eventually we marked our weakest trading session in recent weeks by shedding nearly a couple of percent.
SInce last few days, we have been advocating staying light in the range of 10700-11000; but honestly we didn't expect such profit booking immediately. Rather we expected a possibility of Nifty surpassing the 10850 mark and then heading towards 11000 first. Very much in line with this, yesterday we started the session above 10850 but unfortunately, the banking space took a back seat, which resulted in some profit booking at higher levels.This weakness augmented today and hence, we came off sharply to test 10600. Now, NIfty has slipped below the key support of 10670, which is not a good sign for the bulls. In case of further weakness, we may see this correction getting extended towards 10550 - 10500. On the flipside, 10650 - 10700 has now become an immediate resistance zone. If index has to regain any strength, it needs to surpass these barriers soon.
With a broader view, we still do not consider this as a complete trend reversal, rather would construe it as a running correction within the uptrend. However, we cannot become too complacent and hence, we would keep a regular tab of the overall development for next couple of days.”
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