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Daily Market Wrap Up By Mr. Rajesh Bhosale,Technical Analyst, Angel One Ltd

The August F&O expiry session started with a gap up opening however post opening there was no major traction in key indices. The real action was seen outside the index as many individual stocks witnessed mesmerizing moves and the undertone remained bullish. During the last hour, however, the expiry play started as after breaking intraday support levels there was a cascading effect that dragged Nifty towards 17500 and ended just above it with a loss of around half a percent.

After the decent rally seen during the last week, this week so far has been more of consolidation for the benchmark with some profit booking seen at higher levels. The major culprit for this has been the weak global cues along with the non-participation of heavy-weight counters. Last week, we broke above a congestion zone when we closed above the 15940 - 16000 zone and technically prices tend to retest breakout levels before resuming the up move. Hence, we remain buoyant and expect buying to emerge from lower levels where 15940 - 16000 will act as a sacrosanct point. Having said that, one should not be complacent as we are not completely out of the woods and should keep an eye on global development as well. On the flip side, we can see 16200 - 16250 is now acting as immediate resistance. Hence, one should ideally look to buy at lower levels and book profits around the resistance levels.

Despite the weakness in the benchmark, the market breadth seemed positive as many individual counters gave splendid moves. This is exactly what we highlighted in our previous outlook to focus on apt themes that will give outperforming opportunities and we reiterate one should continue with the same however they need to be very fussy in their selection.  

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