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Below is quote on Daily Market Wrap Up By Mr. Rajesh Bhosale,Technical Analyst, Angel One Ltd

Early hiccups were absorbed successfully, Nifty reclaims 17750 

The US markets reacted negatively to the remark of the FED Chairperson on the rate hikes and taking cues from there the SGX Nifty indicated a weak opening. In line with this, our markets had a gap-down opening however post the initial hiccup there was a gradual bounce back to recover the lost ground. During the fag end there was a strong positive traction that eventually resulted in Nifty ending with gains of 0.24 tad above 17750.

Our markets outperformed as compared to the peers and the initial dip getting bought into augurs well for the bulls. As highlighted in our previous outlook, 17800 – 17850 is a key zone to watch out for as it coincides with a 61.8% retracement level and 89EMA. However, considering the broad-based buying and fag end surge we expect the benchmark to surpass this level and head towards 18000 in the coming sessions. On the flip side, even though the bullish gap left on Monday got filled, it did its job of acting as a support, and going ahead as well we continue to see 17600 – 17570 as strong support. On the weekly expiry day, any dip toward this key level can be considered a buying opportunity.

Even though there was no major change on the Index front, there was a lot of action in the midcap counters. If we observe the Nifty Midcap 100 index, it has broken above its recent swing high and can be considered a technical bullish breakout. Going ahead, we expect the midcap space to continue to outperform, and hence traders are advised to focus on identifying apt themes that can give mesmerizing moves in the near term.

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