IGI Logo

Below is quote on Daily Market Wrap Up By Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel One Ltd

Our market started the session with marginal gains but soon after the sell off resumed to test the 17450 mark. The oversold markets then rebounded sharply post the initial hour to hasten towards 17600 in a flash. However, due to lack of follow up buying, the momentum fizzed out at higher levels. During the remaining part of the session, the Nifty remained sideways and with some weakness towards the end resulted in Nifty concluding the February series on a weak note, tad above 17500.

It’s been a challenging series for our markets in general, especially the latter part where we observed tremendous weakness across the broader market. Taking a glance at the broader price action, all key indices have reached their crucial support zones. We can see them placed around the multi-month trend line levels. Since it was mostly financial led down move recently, the other indices like, BANKNIFTY and FINNIFTY have rebounded sharply and formed a ‘Dragonfly Doji’ pattern precisely at ‘Trendline’ and ‘200-SMA’, respectively. Hence, if global market supports, we will not be surprised to see some recovery in coming sessions. Hopefully, the key support for Nifty around 17450 – 17350 remains intact and the moment we get a strong close above 17700 – 17800, we may see a good sustainable rally in the March series. Let’s see how things pan out going ahead. Traders are advised to avoid creating fresh shorts here and should ideally keep a close eye on recent draggers who are trading around key supports, can certainly provide better trading opportunities.

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