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Below are Views On Market unable to hold early gains, selling drags Nifty towards 14500 By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

“After yesterday’s tail end surge, it was really difficult to digest a surprising gap up in our market. It was on the back of strong cues from the global peers after the US Fed meet. However, once again market failed to hold on to its gains as we saw a sudden nosedive post the mid session to conclude the penultimate weekly expiry with over a percent cut.

Since last few days, key indices were range bound but if we meticulously observe the price action of individual stocks (especially from the F&O universe), some sort of distribution was clearly visible. Last two day’s decline in Nifty and other key indices was the outcome of the overall selling happening in the individual stocks. With today’s move, Nifty is back to its post budget gap that was created around 14470 – 14330. Let’s see how things pan out as we move closer to the monthly expiry week. For the coming session, 14630 followed by 14700 would be seen as intraday resistances; whereas on the lower side, a sustainable breach below 14470 would open the floodgates for an extended correction.

The banking index has been the major culprits in all in between corrections recently and it continue to remain so. Apart from this, the broader market too, seemed to have lost its charm as we can see it trading at the cusp of the ‘Rising Wedge’ pattern on the daily chart. Traders are repeatedly advised to stay light and avoid taking aggressive bets (especially on the long side) for a while.”

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