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Our markets had a lackluster day of trade in the absence of any major triggers. We had a flat start to the session, which was then followed by a gradual decline to retest Monday’s low around 17570. However, with the undertone still bullish, we witnessed a marginal bounce during the last hour, to eventually end with a loss of 0.23%, holding 17600 on a closing basis.

After the recent sharp rally, that is witnessed from the swing lows of around 16900; markets have now entered a corrective mode. Typically, such moves can be quite agonizing as the prices steadily decline, eroding the buyer’s interest. This is precisely what we have observed in the movement of the benchmark index during the past three sessions. The major action has been outside the index as the broader markets continue to buzz and traders seem to have shifted their focus there. As far as levels are concerned, prices have now approached a key support zone formed by Trendline breakout levels and 200SMA coinciding around 17550 – 17500 levels. For the weekly expiry, we sense prices to defend these key levels and aggressive traders can opt to buy very close around it for a strong bounce back. If in case the support is broken, then the correction may deepen, which we don’t see in the current situation. On the flip side, immediate resistance is now seen at 17750 – 17800 levels, where one can look to book profits.

Traders should keep a tab on the above levels for the weekly expiry trade and should ideally focus on thematic moves as they continue to give mesmerizing moves. 

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