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

Our market started on a flat note tracking the positive global cues and inched higher at the opening bell. But soon after, a sell-off got triggered that gradually dragged the index below yesterday’s low, signifying the strength of the bears at higher grounds. With the intense day of sell-off, Nifty continued the selling streak for the eighth day in a row and settled a tad above the 17300 level with another cut of 0.51 percent.

Technically speaking, the benchmark index kept flirting around the 200 SMA throughout the session but eventually settled tad below the same. Price-wise it does not augur well for the bulls; but we are still a bit skeptical and do not want to get carried away by the close. The main reason behind this is a ‘Positive Divergence’ in the daily ‘RSI-Smoothened’ oscillator. When such condition takes place, we may see deception in price breakdown. Also, the banking space is showing some resilience and till the time, banking does not give up, the hope of recovery remains intact. Hence, we advise traders avoid shorting and let us see whether follow through selling happens or not. As far as levels are concerned, 17200 is to be seen as immediate support; whereas on the flipside, 17400 followed by 17500 is the crucial hurdle for the benchmark index.

As we advance, one needs to keep close track of the heavyweight’s performance as they have contributed to the sell-off. Besides this, global development should also be tracked closely, and in the meantime, we would advocate traders to avoid aggressive bets and focus on stock-specific actions. Simultaneously, Investors can start picking good-quality propositions in a staggered manner from a short to medium-term perspective.

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