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

Our market started the day on a frail note, tracking the weakness across the Asian bourses. The benchmark index Nifty50 continued its southward journey for the fourth consecutive session to test sub-1700 levels, inferring weakened sentiment. Amidst the ongoing sell-off, Nifty concluded the day with a cut of 0.65 percent and settled a tad above the 17000 mark.

The relentless selling has dragged the Nifty towards the psychological mark, which is likely to be seen as the last ray of hope for a reversal in the short run. Technically, the market has entered way below oversold territory, and any relief on the global front could accelerate momentum on the higher side. As far as levels are concerned, 17200 is likely to be seen as immediate resistance, followed by the sturdy hurdle of 200 SMA, placed around the 17400–17450 odd zone in the comparable period. On the downside, strong demand is expected near 17000–16900 odd levels.

The ongoing correction is due to global macro factors, hence, any improvement in the overseas market should act as a catalyst for the bulls. Technically, the bearish formation would only get discarded above the 200 SMA. Until then, one should remain cautious and closely track global and domestic developments. Also, traders are advised to avoid aggressive bets and look for stock-specific action, while investors could now seize this opportunity by initiating accumulation in good blue-chip companies but in a staggered manner.

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