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

Weakness persists, Nifty below 17500 now

Friday’s sharp profit booking was a precursor of some sustainable decline after reaching the psychological mark of 18000. With US markets concluding the week on a weak note, we started the monthly expiry week on a sluggish note. The selling augmented right from the word go to break 17600 first and then eventually drifted below the key point of 17500 towards the end. Banking was the major culprit in this weakness followed by a few capital goods as well as heavyweight IT counters. It also turned out to be a brutal session for the broader market as the NIFTY MIDCAP 50 index concluded with more than a couple of percent cut.

After two months of relentless BULL run, all markets across the globe are undergoing some profit booking now. We are certainly not spared with it. Concerning the previous commentary, Friday’s weak close was an indication of further decline in our markets, which did happen on expected lines. However, we must accept the fact that it’s slightly extended our projected intraday levels. Now, the next cluster of support is visible in the vicinity of 17400 – 17350. It would be interesting to see whether we continue this profit booking mode to test these levels first or slightly oversold market opts for some relief in the coming session. In our sense, the momentum traders should lighten up shorts if we reach this support zone first or aggressive traders can even look to take a punt on the long side there. On the flip side, 17560 followed by 17650 are to be seen as intraday resistances. We advise traders to stay light on positions and even the stock-specific trades are to be picked very carefully.