IGI Logo

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

Despite positive global cues, our markets had a terrible session yesterday as Nifty marked the lowest close in last three months. But we could not neglect the extended recovery in global peers today. All key indices started the session with a decent upside gap and as the day progressed, the upward move kept accelerating to recoup all previous day’s losses. Eventually, Nifty ended the session tad below 17200 with over one and half a percent gains.

The way market closed yesterday below 17000, things looked extremely bleak for our markets. But we had to finally give respect to the global relief and as a result, we witnessed a broad based recovery in our markets today. We had mentioned how banking index is placed precisely at the ‘200-day SMA’ and it could become the deciding factor going ahead. Today, the banking space had a lion share in pulling the benchmark index higher from critical levels. Now since RBI is going to announce its monetary policy tomorrow, further action in our market will be dictated by this heavyweight influential basket. Let’s see how things pan out but as far as technical levels are concerned, we expect Nifty to remain in a range of 400 – 500 points before it breaks out in either direction. On the higher side, 17300 followed by 17500 are to be seen as immediate hurdles; where Nifty is likely to feel some pressure; whereas on the flipside, 17000 has become a sacrosanct support now. We reiterate that as long as index consolidates in this range, one needs to focus on stock specific moves which are likely to provide better trading opportunities.

Above views are of the author and not of the website kindly read disclaimer