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

Our market started the week on a flat note, taking cues from mixed global bourses. Soon after the opening bell, the bulls grabbed the opportunity and made a modest recovery in the benchmark index, after which slender range-bound moves were seen for most of the day. However, the market gained further traction in the penultimate hour as broad-based buying weighed in and levitated overall sentiments. Amidst the strong day of trade, the Nifty settled near the day’s high, procuring eighth-tenth a percent.

Technically, there has been no substantial change in the market outlook as the bulls made a comeback from their support zone and showcased their resilience. Since we are still below 18450 – 18500, one more round of follow-up buying is needed to negate the breakdown witnessed on Friday. The undertone is expected to remain upbeat till Nifty sustains above the support of 18200, followed by its sacrosanct demand zone of 18100-18000. Looking at the technical setup, until the index decisively surpasses 18600, a range-bound movement could be continued in the comparable period. Simultaneously, the strategy of ‘buying near the support and staying light near the resistance’ would be suitable in the current situation, and participants are advised to keep a one step at a time approach for a while.

As we advance, many stock-specific adjustments are likely to continue and provide substantial trading opportunities as the Midcap index is interestingly poised. Hence one should continue to identify such potential movers and trade accordingly. Meanwhile, traders should also stay abreast with global and domestic developments and keep a close tab on the mentioned levels.

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