Below is the Quote on Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking
“We inaugurated the week on Monday on a flat note; however, right from the word go, markets looked a bit depressed and as a result, we witnessed sustained selling throughout the day. Eventually, the Nifty marked the weakest session in the recent past. However, the ‘200-SMA’ level of 10870 acted as a sheet anchor for the bulls and despite the strong selling momentum there, Nifty managed to hold this sacrosanct support. The optimist traders somehow managed to sail through this difficult session and hence, with the help of positivity across the globe, our markets too started rebounding sharply. Post the smart recovery on Tuesday, the index consolidated by maintaining its positive posture to conclude the action-packed week tab above the 11200 mark.
In our opinion, the way markets are placed, the coming week would be quite crucial and hence, one should be keeping a close eye on few key levels. Although the market has managed to recover well, it would be a daunting task surpassing the sturdy wall of 11300-11350. Till the time it is not conquered successfully, we advocate some caution. Let’s understand, technically, why this should be considered an important junction. Firstly, the 78.6% retracement of the entire fall from 12430.50 to 7511.10 comes around it. Secondly, the 100% ‘Price Extension’ of the first up leg (7511.10 - 9889.05) from 8806.75 precisely coincides around 11300-11350. And now we are standing at the pullback level of the ‘Parabolic SAR’ which has been following the entire uptrend, has finally given some sign of weakness (due to Monday’s negative close) for the first time in the entire up move. Considering all these observations, we advise traders to stay light and should ideally take some money off the table.
Markets were on recovery mode first and then remained in a slender range of 150 points for three sessions. Looking at the benchmark index, it might appear a boring week (especially the second half); but if we meticulously observe the price action in the broader markets, we would rate it as one of the finest weeks for individual stocks in the last few weeks. Finally, on Friday, the NIFTY MIDCAP 50 index posted a smart rally to surpass its recent hurdles. Hence, traders are advised to stay focused on individual stocks in the forthcoming week; but the aggressive positions should be avoided till the time important levels are not surpassed connivingly.”
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