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Daily Market Wrap Up By Mr. Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

The weakness in the US bourses over the weekend has shown substantial repercussions on the Indian equity market. The benchmark index tumbled over 370 points at the opening bell, setting a bleak start to the truncated week. Though the buying was quite relevant at the lower levels, that gradually pulled the indices upwards throughout the day, assuring the undertone remained bullish. The initial loss pared with modest recovery, wherein the benchmark index concluded the day a tad above the 17300 level with a cut of 1.40 percent.

The global weakness has embarked on some selling in our equity space, but the bulls of D-street were resilient to let go of the opportunity and firmly bought the dips. Technically, the positive structure has been shaken a bit as the technical swing support of 17350 got breached decisively. At the current juncture, the 21 DEMA and the recent unfilled gap around 17380-17520 are expected to act as an immediate hurdle for the index in the comparable period. While on the downside, 17150-17200 is expected to cushion any sort of fall, followed by the sacrosanct support of the unfilled gap around the psychological mark of 17000.

Going forward, a close tab should be held on the global and domestic macro developments. The overall sentiments are likely to remain upbeat in the near term, wherein any minor dip could be utilized as an opportunity for the bulls to add long positions. We might also witness significant traction outside the indices in the broader market. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities.

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