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Below is the Daily Market Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Some respite at 17350, RIL and Banking leads the move

Last night, US markets had one more round of selling which dampened the overall sentiments of traders across the globe. Tracking these cues, our markets too started lower to hasten towards the key support of 17350. This being the ’20-day EMA’ level, the correction halted in the opening hour which was then followed by a sharp recovery to not only erase all losses but also entered the positive terrain. The similar sort of swings on either side was repeated during the latter half as well. Eventually, the action-packed session ended with half a percent gain tad below the 17600 mark.

The Nifty has completed a price correction of 650 points in merely three sessions i.e. nearly 3.50% from Friday’s high of 17992.20. In our previous commentary, we had mentioned the support zone around 17400 – 17350. Since it coincided with the key moving average (20-EMA), the oversold market attracted some buying at lower levels. With the help of RIL and the banking space who became the real protagonists, the benchmark index Nifty managed to close almost at a day’s high. Although the rebound was very much on expected lines, one should avoid getting carried away with this. We are still not out of the woods yet till a time a few important levels are taken out in the upward direction. As of now, 17650 – 17710 is to be seen as an immediate resistance zone and momentum traders should ideally look to lighten up longs around it. On the flip side, 17525 – 17450 are to be seen as immediate supports. The coming session can slightly be a tricky one because if we rebound first towards the mentioned intraday hurdles, the index is likely to land up in a corridor of uncertainty. Hence, it’s better to follow one step at a time for a couple of trading sessions.

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