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

We had a shaky start on Monday as Nifty tumbled more than 300 points within a blink of an eye in opening trades. Fortunately the nerves settled down thereafter and Nifty managed to recoup all losses at the close. This was followed by exactly a replica of Monday where Nifty corrected sharply towards the fag end of the session to sneak below the 17000 mark. However once again the bulls managed to comeback strongly which was supported by the cooling off in the global peers. With a steady recovery, Nifty almost retested 17500 during the early trades on Friday. But bears were not willing to give up as they once again showed their dominance at higher levels to erase major portion of weekly gains. 

Overall this week our market managed to close in the positive terrain; but it was certainly a challenging week for both counterparties. Market was clearly unsure of its direction for the most part of the week. If we look at it from a technical point of view, market is respecting the levels precisely. At the beginning, the Nifty started rebounding after reaching the price target of ‘Head and Shoulder’ pattern of 16800 and on Friday, it became nervous after nearing a stiff resistance zone of 17500 – 17600. Direction wise, we continue to remain cautious and there is no doubt we are still in a ‘Sell on rise’ kind of market. This view will remain intact as long as Nifty does not surpass 17900 which is the confluence point of two key trend lines. Also sooner or later we expect the recent low around 16800 is to be breached soon; but it will happen immediately or after some more consolidation in the range of 16800 – 17500; we need to assess the situation in the coming week. 

Meanwhile, traders can continue with a stock specific approach and we may see trades on both sides if Nifty remains in a consolidation mode. But it would be a prudent strategy to keep booking timely profits and considering the volatile nature of global markets, carrying aggressive bets overnight should be strictly avoided. As far as levels are concerned, 17350 – 17500 – 17600 are to be considered as immediate hurdles; whereas on the flipside, 17000 – 16800 should be treated as a cluster of support.

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