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 "Market Wrap Up" by  Mr. Sameet Chavan, Chief Analyst - Technical & Derivative Research, Angel One Ltd.

US markets witnessed a spectacular recovery last night to conclude with healthy gains. This overnight development lifted overall sentiments across the globe and to mirror this, our domestic markets had a massive bump up at the opening. In the initial trade, these gains extended a bit and then thereafter, key indices remained sideways by maintaining its sturdy posture. Eventually, the Nifty ended the session convincingly above 17250 with a couple of percent gains.

After yesterday’s correction, our markets finally found its mojo back. So if we take Friday’s rally into a consideration, yesterday’s move should only be interpreted as a pull back. Now, the global sentiments seems to have improved a fair bit across asset classes, which is likely to provide the much needed tailwind for our markets. In our sense, extremely oversold US markets are likely to continue their recovery mode and hence, we expect the Nifty to extend today’s gains in the remaining past of the week. As far as levels are concerned, 17000 – 16800 is to be seen as sacrosanct zone now, before which 17100 is to be treated as immediate support. On the flipside, a move beyond 17200 results into a negation of recent corrective trend. Going forward, if global market supports, we will not be surprised to see Nifty hastening towards 17350 – 17500 soon. With reference to our weekly commentary, the ’Bullish Engulfing’ pattern formed on Friday is now proving its significance. Today, almost all sectors chipped in; hence, traders are advised to remain sanguine and look to identify opportunities in thematic moves, which we reckon is going to offer better trading bets for momentum traders.

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