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Below is quote on Broader market continues to sulk, Nifty drags below 18300 by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Yesterday’s corrective session was followed by a muted opening today, owing to mixed global cues. The opening hour was exactly a replica of previous session, where index corrected sharply in few minutes and then had a complete recovery in the following half an hour. However thereafter the index kept sliding lower gradually which eventually accelerated in the penultimate hour of the session to sneak below the 18300 mark.

In last two days, the benchmark index has witnessed a mild profit booking; but the real hammering was seen in some of the high beta midcap counters, which had given relentless moves of late. So one has to be very agile when it comes to such propositions; because short term traders seemed have caught on the wrong foot at higher levels in these names. As far as benchmark index is concerned, It’s off nearly 2% in last couple of sessions, which is certainly not a big deal. But now we can see them approaching key support zone of 18200 – 18000. If market has to maintain its recent positive posture, it needs to hold these supports and move higher. But in case if we see it sliding below 18000, it would be first sign of weakness on the charts. On the higher side, 18350 followed by 18460 are to be considered as immediate hurdles. For the coming session, if we see any bounce towards the mentioned levels, traders can choose to lighten up longs and the aggressive traders can take a punt by shorting around it.

The only positive take away of today’s session is the overall resilience from the banking space. It remained firm throughout the session and has provided the helping hand in today’s difficult session. Let’s see whether it continues to outperform or gets succumbed to the pressure.

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