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Daily Market Wrap Up By Mr. Sameet Chavan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

Despite SGX Nifty indicating a sluggish start, our benchmark index opened on a positive note by shrugging off nervousness from obscure US markets. In the initial hour, it extended its gains towards 16050 but once again some selling pressure at higher levels restricted the up move. In fact, due to aggravation in some of the heavyweights, the Nifty not only pare down gains but also went on to retest the 15850 mark. Eventually, a modest recovery in the final hour of trade, pulled the Nifty beyond 15900 to conclude the weekly expiry on a muted note.

It was almost a replica of Wednesday’s session where our key indices struggled to maintain the opening lead and concluded around key supports. Although, the global environment is still not conducive; our markets are not willing to give up as they attract some buyers at lower levels. Technically speaking, we can see the key support zone of 15950 – 15900 getting defended successfully on a closing basis. Hence, the bias still remains positive and one should use this as a buying opportunity till the time we do not sneak below it on a sustainable basis. On the flip side, there are a lot of headwinds that are not willing markets to stay at higher levels. For the coming session, 16040 – 16070 are to be seen as immediate resistances and only a move beyond this would trigger some broad-based buying in the market. At this juncture, it’s advisable to stay light and identify the apt themes that remain a key for momentum traders. Sectorally, banking and IT again started sulking, and hence, their participation is a must in order to lift the overall sentiments in the traders’ fraternity.

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