IGI Logo

Below is quote on Market Wrap Up - Index consolidates ahead of expiry day; stock specific momentum continues by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel One Ltd

The global markets corrected sharply yesterday evening and thus the cues were not much positive at the open. Hence, inspite of the recovery from the lows yesterday, we started today’s sessions on a negative note. However, there was no follow up selling and the index gradually recovered to recoup the losses at one point of time. Nifty ended the session marginally negative above 17700.

Inspite of the negative start, Nifty managed to trade above its previous sessions low of 17575 which is an important support level (89 EMA on the hourly chart). Nifty consolidated within a range, but the short term support of 17800 which was breached on Tuesday acted as a resistance, and the index did not surpass that either.

However, outside the index the stock specific movement was positive and provided good trading opportunities for day traders. The monthly F&O expiry day could be interesting as the market is showing some uncertainty and rising VIX levels could lead to some higher volatility. The level around 17575 would be the crucial support and if this is breached, then we would expect some deeper price wise correction in coming days. On the flipside, 17800 and 17900 are the immediate resistances to watch out for. Traders are advised to continue to trade with a sector/stock specific approach and avoid aggressive positions.

Above views are of the author and not of the website kindly read disclaimer