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

Last evening, US markets wobbled a bit after the Fed policy. The kind of reaction we witnessed last night, it appeared as if global markets have digested this development and no major damage was done. However, today morning, markets across the globe started feeling some pressure, which augmented as the day progressed. Hence, the initial gradual decline in our bourses became the considerable correction at the close. Nifty shed more than 1.30% to close convincingly below the 18450 mark.

With today’s sharp decline, not only sentiments but recent chart structure has also been dented now. Since last few months, we did not have any discomfort in all in-between corrections; but the kind of price action we witnessed today, does not augur well for the bulls. The coming session would be quite crucial for our market in order to maintain the recent optimism intact. We are not far away from the key swing low of 18350. If we extend the correction and sustains below it, we may see at least 300 – 400 points in the following sessions. The next levels to watch out for would be 18230 – 18100 levels. Hopefully, this doesn’t happen because it will apply immediate brakes on recent positive trend. On the flipside, it would be crucial to reclaim 18500 – 18600 in coming couple of sessions. Once we surpass this crucial zone, today’s down move then can be construed as a running correction and market then resumes its upwards trajectory. Let’s see how things pan out. It would also be important to keep a close eye on global developments, which are likely to dictate the near-term direction.

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