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

Our domestic market plunged post the announcement of the rate hike by the RBI Governor, which was majorly in line with the market expectations. The benchmark index Nifty50 descended towards the 18560 odd levels in intraday trade and struggled throughout the trading session. By the penultimate hour, a sell-off triggered that dragged the index lower towards the sacrosanct support of 18500. Post all hustles, Nifty concluded the day in red with a cut of 0.44 percent and settled a tad above the 18550 level.

Technically speaking, a sign of timidness is evident as there is no cue of follow-up buying in the index to levitate the sentiments. The recent developments construe a motion of tentativeness among the market participants as Nifty plunged to test the critical support zone. However, till the sacrosanct of 18500 is withheld, the view of buy on dip and sell on rise remains unscathed. The lack of firm buying is the only worrisome, signifying the indecisiveness among the bulls to retract the market. On the higher end, a decisive closure above 18700 could only bring some cheer back into the market, and then we may expect the northward journey to continue. Meanwhile, any breach below 18500 could dampen the sentiments further and Nifty could plunge towards the next support of 18400.

Going forward, the market is likely to remain in a slender range. We reiterate to keep a close tab on the mentioned levels. Also, one should continue with the stock-specific approach, as even though the indices may not be doing much, the individual stocks are not at all short of action. Also, one should stay abreast with global developments.

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