Market Wrap Up : Consolidation continues, eyes on RBI Governor Says Mr. Sameet Chavan, Angel One
Below is on Market Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd
Our markets started the session on a quiet note, despite SGX's indication of a strong start. Around the midsession, we witnessed a small drop in key indices, which resulted in testing the 17650 mark. However, a strong bout of buying in last couple of hours of the day, trimmed major portion of losses to reclaim 17700 on a closing basis. The banking space was the major catalyst in this recovery.
The last two days of price action are a mere consolidation, as we saw Nifty trading within the 70% price range of Friday’s "bar." This makes the higher boundary of 17870–17940 quite crucial, and it is now to be seen as a trend deciding zone. On the flipside, 17650 followed by 17580 is to be considered as immediate supports for Nifty. Traders are advised to stay light on indices within this consolidation phase and wait for a breakout to happen on either side (we expect it to happen in an upward direction soon). Although, key indices are not doing much, individual pockets are showing good traction, and traders can continue to identify such potential movers that are likely to provide better trading opportunities. For the coming session, all eyes will be on the RBI governor and his commentary. Hopefully, he manages to uplift the overall sentiment in the markets and provides the much-needed impetus to come out of the recent congestion phase.
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