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Below is Quote on the Weekly Market Wrap Up - Global uncertainty drags market from record highs by Mr. Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

On Monday, we started the week on a positive note as bulls continued their upward journey from where it left previous Friday. For the next couple of sessions, the benchmark index continued with its habit of making fresh record highs every day. In the process, the Nifty went on to reach yet another milestone of 16700. On this day itself, we witnessed mild profit booking to close tad below 16600. Our markets were shut on Thursday due to trading holiday and during this time only; the global markets became nervous all of a sudden after the FED minutes. This certainly had a rub off effect on us as markets resumed the trading on Friday with a decent downside gap. Fortunately the damage was not as big as in index as the SGX Nifty was indicating at one point. Eventually Nifty ended the week at 16450 with a nominal weekly cut.

Despite being a truncated week, we had lot of action in the market especially in last couple of sessions. Unfortunately the overall development was not pleasant. Now, looking at the weekly close of the benchmark, one would say not much damage in spite of lot uncertainty across the globe. But if we meticulously observe the individual stocks outside IT and FMCG spaces, the brutal knocks are clearly visible. There has literally been onslaught in many counters from the derivatives space as well, which is really heart-breaking for traders as they got trapped all of a sudden looking at the bright posturing of benchmark indices. Such things can be deceptive at elevated levels because some or the other heavyweight basket keeps the index higher and this time it was defensive names like IT and FMCG.

In our previous commentary, we had clearly mentioned how so called ‘Hunky Dory’ picture is not so good for the market and this week’s stock specific destruction clearly validates this point. Now the weekly chart of Nifty exhibits a ‘Shooting Star’ candle, which is an indication of some pause if the low of the candle is breached on a closing basis. For the coming week, the cluster of supports at 16350 – 16250 – 16150 are to be observed closely. As of now there is no indication of Nifty sliding below the lower range of this support zone. But you never know how global developments pan out. On the flipside, the real strength in Nifty is possible only after convincingly surpassing the band of 16500 – 16600. Also, the BANKNIFTY and the NIFTY MIDCAP 50 index are trading at make or break levels.  Since the coming week is monthly expiry week, it would be interesting to see how things unfold. Traders are advised to remain light for a while and the ideal strategy would be to look at the individual stocks than the benchmark index.

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