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 "Market Wrap Up" by  Mr. Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

Our market tumbled over the rising concerns of weakening INR and the ongoing global correction. At the very start of the week, the key indices tested the crucial support levels, implying the spread of timidity in the overall market space. The benchmark index Nifty50 witnessed a gap down opening that further aggravated and dragged it below the psychological mark of 17000. However, post the hustles in today’s session, the index managed to settle the day a tad above 17000 levels, with a cut of 1.80 percent.

Recently, we managed to decouple with our global peers, but in the last couple of sessions, our markets finally surrendered to the global sell-off. Although we are back to the psychological level of 17000 in a flash, our broader structure still looks quite robust as compared to the US markets. Hence, we advise traders not to get baffled by this sharp decline and to remain firm. The benchmark index Nifty has now entered a cluster of key moving averages i.e. 89-day EMA and 200-day SMA. Also, the previous breakout point coincides around 16800; hence, as of now, we do not expect the correction to extend below these levels. If it gets breached, we may have to revisit our view; but as of now, we would like to believe we are very much close to the sacrosanct supports, and since markets are extremely oversold, it’s advisable to trim existing shorts and start nibbling into quality propositions. 

Taking a glance at the US markets, we will not be surprised to see some relief in key indices there as they have been on a continuous declining spree for a month. Any rebound could certainly provide the much-needed cushion for our domestic markets, and since we are relatively stronger, a possibility of a sharper bounce back cannot be ruled out. As far as supports are concerned, 17000 – 16900 – 16800 is to be seen as a sacrosanct cluster, whereas on the flip side, 17200 followed by 17350 are to be seen as intraday resistances.

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