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

Smart recovery led Nifty to reclaim 19600

Despite the roller coaster move in US bourses last night, things did not damage the overall sentiments of market participants. Since most Asian peers were flat to positive, we started the session on a muted note in line with GIFT NIFTY. As the day progressed, some strong selling was visible in heavyweight names, which dragged the Nifty below the 19500 mark around the mid-session. Fortunately, the Dow futures showed some strength after the buoyant opening of European markets. This not only resulted in a V-shaped recovery but also went on to close in the green convincingly above 19600.

The index has been hovering near the 20 DEMA for a couple of trading sessions now, wherein both bulls and bears are apprehensive about a conclusive move. On the technical chart, there have been no significant changes; however, this ongoing time-wise correction should be considered healthy while the market awaits some trigger as a catalyst to set up the near-term trend. As far as levels are concerned, the bearish gap of 19678-19705 withholds the immediate hurdle and a decisive breach would attract new longs in the index for the next potential resistance around 19800-19850 in the comparable period. While on the downside, the pivotal support of 19500 proved its mettle and is expected to cushion any blip in the shortcoming, followed by 19440-19380.

As we advance, the RBI policy outcome followed by macro data is likely to set up the immediate tone for our market. Simultaneously, global developments need to be overseen, which may act as a catalyst. Also, sectoral rotation is quite evident for the time being, and thus, one must be very selective and focus on a pragmatic approach to outperform the market.

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