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

We started the week on a flat note on Monday owing to mixed global cues. After some initial trades, the negativity reoccurred across the broader market. In fact, as the day progressed the sell off intensified to breach all intraday supports one after another. In the process, the market plunged like a bottomless pit to hasten towards 17000 mark. Due to minor recovery in the end, the Nifty eventually settled above 17100 by shedding nearly 3%. The remaining part of the week was extremely volatile where bulls managed to defend the 16800 in the midst of the challenging environment across the globe. On Friday, the recovery extended towards 17400; but unfortunately the indecisive traders chose to take some money off the table. In the process, Nifty surrendered all gains to close on a flat note.  

Till the time, the global uncertainty do not disappear, we are likely to have challenging markets where the volatility remains on the higher side. Now the budget is around the corner and hence, we do not expect any decisive move (on either side) on Monday at least. Technically speaking, 16800 is considered to be a crucial level because it coincides with the 78.6% retracement of the recent up move as well as the trend line support. Market has not only managed to hold it in last couple of sessions but also had an excellent recovery to reclaim 17000 with some authority. Hence, as long as this support holds, we remain hopeful for some recovery from hereon. On the flip side, if market manages to recover, we don’t see it surpassing the sturdy wall of 17350 – 17500 before the budget. Whatever breakout has to happen (upwards or downwards), it is now likely to happen on or after the budget only. Till then one should expect a range bound movement and should focus on stock specific action.

All eyes on the mega event first and then once it concludes, we must start focusing on global peers again towards the latter half of the week. Because if market has to have a sustained recovery, both these factors need to be in-sync. Apart from this, if we consider the bullish scenario, the banking would be the sector to watch out for along with the Auto space. On the flip side, in case of any unfavorable outcome, one should be prepared for retesting of recent lows and the further development should be reassessed during the week only.

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