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Below is Quote on the Market Wrap-Up - Global sell off triggers correction, Nifty below 17400 By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking 

Today morning, the global screen was extremely terrible and in line with SGX Nifty, we started the week around the 17450 mark. Surpassingly, after the initial hiccup, we witnessed a v-shaped recovery not only to erased losses but also to trade in the green above 17600. However, it could not decouple itself from the global peers for a long time as the markets took a U-turn post the mid-session, to finally sneak below 17400 on a closing basis.

Last two sessions’ (especially today) price activity has certainly validated our recent cautious stance on the market. Since last week or so, we have been advising caution and booking profits in the rally. Percentage wise we may see Nifty falling merely a percent from the Friday’s close, but if we try to dive deep into it, we can see some sharp cuts in individual pockets. The Metal space is clearly one of them. It’s been enjoying its mega Bull Run till now, but the way some of the stocks plunged today, it was intimidating. Also, the banking space which seemed to have come out of its slumber phase, again failed to live up to the expectations. Importantly, the broader market which has been the theme of last 15 months, has underwent some decent profit taking. Practically, the correction was overdue from a quite long time now, this may be the beginning of it. Let’s see how things pan out going forward. For a time being, we would certainly not be in a hurry to buy these dips; because this may not be the similar corrective move that we have been witnessing of late.

As far as levels are concerned, 17550 – 17630 are to be treated as stiff hurdles; whereas on the flipside, we have entered a key support zone of 17450 – 17250. A violation of the lower range would lead to extended correction in the market which in our sense is likely in coming days. Still all eyes would be on the banking as well as midcap space, because they are the ones who are likely to set the tone for the remainder of participants.

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