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

US markets have been in a declining mode for the last couple of weeks and last night, they rebounded sharply due to their overbought condition. We bring the outperforming market of late, was in search of a small push sentimentally and a sharp bounce back globally provided the much-needed impetus to start the session with a decent bump up. A small bout of profit booking around the mid-session was absorbed with ease. Eventually, Nifty concluded the weekly expiry around the 17800 mark by adding a percent to the bulls’ kitty.

This is exactly what we had alluded to in our previous commentary the struggle around 17700 for Nifty will end if we get support from the global peers. We finally managed to close at a 3-week high, which was the recent congestion phase. Importantly, this move is backed by the banking space which has clocked the highest level for the current calendar year. This participation is certainly considered a healthy sign for our market. Going forward, we expect Nifty to continue this northward move towards 17900 – 18000 and then beyond the 18000 mark. On the flip side, if there is no aberration globally, 17700 – 17600 should now act as immediate support. Traders are advised to continue with an optimistic approach and use declines to add fresh longs.

Apart from banking, the other heavyweight space, IT also contributed to today’s rally which has been a laggard for quite some time now. The cement too continued with its dream run as we saw a few smaller names giving a catch-up move to the larger names. One can continue to focus on such thematic movers and also, and the broader market remains the real flavor.

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