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Below is Quote on Daily Market Wrap Up By Mr. Rajesh Bhosale,Technical Analyst, Angel One Ltd

Nifty took a breather; holds on to the key support level

During the extended weekend, a couple of key quarterly result announcements missed the market estimates. And taking cues from there, the SGX Nifty indicated a weak opening; but to a surprise, Nifty started on a flat to positive note, courtesy of other key heavyweights. However, without wasting much time, we witnessed a sell-off in the morning session that marked an intra-day low of 17574. Fortunately, thereafter, a steady bounce was seen during the remaining part that recovered a major part of morning loss to eventually end a tad above 17700 with a loss of 0.68%

Our markets had a spectacular run during the last three weeks and post such moves, the indicators entered an overbought zone. In line with this, a profit booking session was on the cards, and this is exactly what we witnessed in today’s session as prices ended the nine-day winning streak. Despite this, we remain optimistic and consider this a pullback move, as prices precisely defended the trend line breakout levels coinciding with 200 SMA on the daily chart. Going ahead, we sense prices may see some consolidation in the near term before the next leg of the run and hence the apt strategy would be to buy on dips and book profit at higher levels. As far as levels are concerned, we see sacrosanct support in the zone of 17500 – 17550, whereas 17800 – 17900 seems to be an immediate resistance zone.

The IT pack, especially the heavyweight stock INFY was the major culprit to jolt the market lower; however, the BFSI space continued to outperform and provide much-needed support. With the start of the result season, we may continue to see trending moves within counters and it is advisable to focus on such themes and movers that would give better trading opportunities.

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