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Below is the Daily Market Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Yesterday’s spectacular recovery was followed by a decent bump at the opening today, citing to positive mood across the globe. The index extended its early lead a bit to surpass the 17200 mark and then slipped into a consolidation mode. All of a sudden at the stroke of the penultimate hour, market came off sharply on the back of some profit booking. Fortunately this tiny dip got bought into as Nifty went on to conclude the session around day’s high by reclaiming 17200.

Last week, around the same time, things were looking a bit dicey but in such a short span, we are back to the safe terrain comfortably above 17000. Now with recent price development, the base seems to have shifted higher towards 17000 – 16800 and till the time we do not slide below it, there is no reason to worry for. Before this, 17100 is to be considered as intraday support. On the flipside, the Nifty has now entered a key resistance zone of 17200 – 17300. With reference to recent commentary, if bulls have to regain their dominance, they need to conquer this sturdy wall with some authority. In order to achieve this, it needs a solid support from banking giants, because the initial lifting of the market was done predominantly by the IT counters and now it’s time for financial space to prove its significance. Let’s see how things pan out over the next couple of sessions as we are not only approaching the monthly expiry but also the calendar year end.   

In our sense, if any major action has to happen, it will happen in the new year itself. Hence, for next couple of days, the pragmatic approach would be to keep focusing on individual themes which are continuously providing better trading opportunities.

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