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

Despite global markets being a bit nervous today morning, we started the session on a flat note around yesterday’s close. This turned out to be a mere formality as we witnessed the benchmark index sliding in the initial trades itself. Around 16500, the market took a breather and then consolidated with a hint of some recovery. However, markets once again became a bit tentative at the stroke of the penultimate hour, which resulted in the resumption of a downward move to conclude the session with a cut of near nine-tenths of a percent.

Today’s price activity was almost a replica of yesterday’s session which can be termed as an extended profit booking. In addition, the global event (Fed Meet) is lined up mid-week and hence, traders are opting to stay light ahead of it. Technically speaking, the market texture remains unchanged as we are still trading convincingly above key levels. Also, we have now entered a gap area of 16490 – 16360 created last week which should now be seen as a strong support zone for the index. If there is no aberration globally, we are likely to attract buying interest in this zone. Traders are advised not to create aggressive bets ahead of the event but still, we would advise using this decline to add longs and wait for a resumption to happen in the upward direction. As far as resistance levels are concerned, 16575 followed by 16640 are to be seen as immediate levels above which we would see bulls regaining their strength.  

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