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

Our domestic market has witnessed an optimistic start, tracking the strong positive bourses. The benchmark index Nifty50 has seen an initial gap-up opening that got sustained throughout the day, intriguing a positive sign for the market participants. The rub-off effect of the positivity was visible across the board as the index decisively surpassed the crucial resistance zone of 16380-16430. By the end of the session, the index witnessed some profit booking from the higher levels, though it concluded the day on a positive note, a tad above the 16500 level, procuring over a percent.

The broad-based buying interest has undoubtedly boosted the overall market sentiments, though the consecutive buying spree in the week could attract some profit booking in the near period. Technically, the index is inching towards the previous swing high of 16660-16800 odd zone, which might trigger a temporary halt for the bulls. However, the undertone is likely to remain in favor of the bulls, wherein the recent unfilled gap of 16360-16490 is expected to provide a cushion to any minor correction, followed by the sacrosanct support zone of 16200. While on the contrary, the mentioned swing high is the next potential resistance for the index in the comparable period.

Going forward, our market is likely to remain upbeat in the near term, wherein any minor dip could be seen as an opportunity for the bulls to add long positions. We might also witness major traction outside the indices in the broader market space. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities. Meanwhile, keeping a close tab on global and domestic macro developments is advisable.

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