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

Trading for the week started on a sluggish note as indicated by the nervous global cues. The benchmark index opened slightly above 16100 as indicated by the SGX Nifty early in the morning. Technically, this soft opening in our market was mainly triggered by the overall weakness in IT counters; courtesy of disappointing Q1 numbers from giant TCS. However, the same was compensated by another heavyweight pocket, banking. They provided the much-needed cushion at lower levels and as a result, the Nifty managed to recover throughout the remaining part of the session to conclude almost at Friday’s close.

Key indices have now slipped into a consolidation mode and hence, ideally one should now keep focusing on thematic moves / broader markets, which are likely to provide decent trading opportunities. As far as Nifty is concerned, 16100 – 16000 has now become an immediate support zone; whereas on the flip side, slowly and gradually we can see the extension of the rally towards 16350 – 16430. We reiterate globally things have not completely changed yet and hence, it’s better not to get complacent till the time we do not surpass some key levels. Meanwhile, the apt strategy for index traders would be to buy as close as possible to support levels by following strict stop losses and looking to lighten up around the higher end. There would be a lot of sectoral churn during this time and hence, one must meticulously keep a close tab on these developments now.

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