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

Our markets started the session slightly in the green but right from the beginning the benchmark index looked a bit tentative. In the initial hour, Nifty tested sub-18200 levels from where the banking space took the charge and lifted markets higher to trim all losses. But market was not done with its action yet. As we stepped into the penultimate hour, the global markets became extremly nervous which resulted in a sharp decline to test 18100 at the close.

Today for the major part of the session, Nifty remained under pressure but banking was on a roll; but eventually it succumbed to the last hour sell off. This weighed down heavily on the overall sentiments as some of the stocks tumbled like a bottomless pit. Index wise, we lost slightly over a percent but the velocity at which market came off, it was intimidating. Also in last 4 – 5 days, index had done nothing but stock specific movement was quite enough to keep the traders engrossed all the time. Today it was the individual stocks who went under a hammer and hence, was certainly not a  pleasant day for traders. Despite today’s correction, we are not seeing any structural damage yet, rather it should be considered as a profit booking after recent relentless run. As far as levels are concerned, 18000 followed by 17900 to be treated as key supports and if today’s decline was merely a profit booking, market should attract some buying interest around mentioned supports. On the flipside since the volatility has increased a bit, the resistance remains slightly higher at 18250 – 18350.

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