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

After Friday’s mayhem, the global markets looked in a recovery mode and in line with this, the SGX Nifty too indicated a decent gap up by nearly 100 points. Our markets shrugged off this positivity and decided to start the week with nominal gains. In fact after this, we had a small bout of dramatic trades in our markets. During first 10 minutes, Nifty tanked nearly 300 points and immediately in next 10 mins, all losses just disappeared. After this, there was no major activity seen in key indices as they remained in a tight range to conclude the session around the opening levels.

Our markets managed to defend the psychological mark of 17000 on a closing basis; courtesy to some cool off across the globe. RELIANCE once again came for a rescue as we witnessed a sturdy move in the first half. Apart from this, the IT space too managed to chip in as we witnessed a good traction in some of the heavyweights; but if we look at the overall breadth, it was certainly not encouraging. Despite some recovery from lows, the broader market kept sulking throughout the session, which does not augur well for the market sentimentally. Now, if we take a glance at the daily time frame chart of the NIFTY and BANKNIFTY, we can see some interesting candlestick patterns like ‘Long Legged Doji’ and ‘Bullish Hammer’, respectively. For banking index it has occurred precisely at ‘200-day SMA’ which generally is considered a sign of short term bottom. But taking the ongoing scenario into account, we do not construe this as a completion of the corrective phase. We would rather wait for further confirmation in order to arrive at this decision.

For Nifty, the immediate resistance is seen in the range of 17200 – 17300 and with a slightly broader view, till the time we do not move beyond 17600, we are not out of the woods yet. On the flipside, today’s low around 16800 would be seen as a key support. We still reiterate that traders should avoid getting carried away by in between rebounds as we expect the continuation of the corrective move for a while.

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