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"Market Wrap Up" By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

 ​​​​​17000 played a sheet anchor role

Similar to Monday’s session, we had a soft opening today morning as indicated by the SGX Nifty. In the initial hours, the weakness extended as we witnessed some decent correction in the financial space. As a result, Nifty gradually approached its psychological level of 17000 in the first half. However, all of a sudden the buying re-emerged from nowhere and within a blink of an eye, markets were off significantly from day’s low. The buying momentum accelerated towards the fag end to not only erased all losses but also to close above 17300 with more than a percent gains.

During the first half today, we witnessed extension of yesterday’s profit booking mode but as we approached the sacrosanct support of 17000 – 16900, the bulls got activated all of a sudden. Since there was no unfavorable trigger on the domestic as well as global front, the bulls grabbed this opportunity with both hands.  Initially, Reliance and IT pack was providing some helping hand and banking was sulking; but the moment market reversed, the banks came back in the driver’s seat to lift the overall sentiments of the market participants. With reference to our previous commentary, we were pretty clear that this is just a profit booking phase and the buying is likely to attract around 17000 – 16900. Markets perfectly moved as per the script and has now closed at an interesting juncture. For the coming session, 17350 followed by 17500 are the levels to watch out for; whereas on the flipside, 17150 – 17000 are to be considered as intraday supports.

Today, the breadth was extremely positive in the latter half and broader market did extremely well along with some heavyweights. Hence, traders are advised to remain sanguine and focus on individual stocks in order to identify better trading opportunities.

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