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

The weakness in the global markets led to a bleak start for Indian equities, wherein the benchmark index tested the Budget day’s low to daunt the market sentiments. However, by the penultimate hour some buying emergence from the lows led to a modest recovery in Nifty. With all the hustle, the benchmark index concluded the seventh consecutive day in red with a cut of 0.42 percent.

Technically, the chart is placed at a critical zone of make or break and looking at the continuity of the sell-off, one needs to be prepared for any scenario. However, the formation of the ‘Hammer’ candle on the technical chart that too around 200 SMA could be seen as a ray of hope for a reversal from the ongoing selling saga. A follow-up buying with a close above today’s high would authenticate the trend reversal in the near term. As far as levels are concerned, any closure below 17350 could drag Nifty toward the 17200-17100 zone in the comparable period. While on the higher end, the 17550-17600 is likely to be seen as immediate resistance for the index.

Since the market is highly oversold, one needs to keep a cautious view and avoid undue risk for the time being. Meanwhile, a close tab should be kept on global developments, which may lead to an immediate trend setup, and it is advisable to be very selective in finding trading opportunities.

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