IGI Logo

Below is the Daily Market Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Last week, over the weekend, once again global sentiments dampened which resulted in a massive gap down opening on Monday. But fortunately, our markets managed to give a V-shaped recovery to reclaim the 17200 mark at the close. In the subsequent session, the benchmark index Nifty failed to sustain at higher levels and due to immense selling in some of the heavyweight pockets, we finally surrendered 17000 on a closing basis. For the next couple of sessions, we did see some range-bound action with key levels being held on either side. However, On Friday, our markets started the session with a huge bump up, courtesy of a spectacular overnight rally in US bourses. Once again at higher levels, tentative traders chose to take some money off the table. This resulted in trimming some gains but despite this, Nifty managed to conclude the week tad below 17200 by restricting the weekly losses to merely seven-tenths of a percent.

It was a bit challenging week as markets remained clueless for the most part of the week. In fact, on Friday when things started to look a bit rosy, the last-hour profit booking reduced the excitement level among the market participants. Nevertheless, Nifty defending key support zone (cluster of 89-day EMA and 200-day SMA) amid uncertainty, bodes well for the bulls. Going ahead, we will not be surprised to see global relief extending a bit, which will provide the much-needed impetus to stronger markets like us. As far as supports are concerned, 17000 – 16800 has proved its mettle and it continues to be a sacrosanct zone for the coming week as well.  On the flip side, if we find tiny support also from the global peers, the Nifty is good to go beyond the study wall of 17400. This will help us find our mojo back and, in this case, we would certainly gear up for a pre-Diwali rally in our market. Hopefully, our anticipation becomes the reality in the coming week as this will bring a wider smile back in the traders’ fraternity. It’s advisable to continue with an optimistic approach and ideally one should keep focusing on thematic movers which are likely to provide better trading opportunities.

Above views are of the author and not of the website kindly read disclaimer