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Below is quote on Nifty ends flat amid intraday volatility by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Today morning, the global set up was good and in fact we over surpassed SGX Nifty by kick-starting the week well above the 18200 mark. However, Nifty immediately erased all gains in the following ticks and due to aggravated selling in few heavyweights, we slid below the psychological level of 18000 in the opening hour itself. Things did not look good at one point but fortunately the oversold market started rebounding from lower levels to again reclaim the opening levels. During the second half, index remained in a small range to conclude the session on a flat note.

The banking space continues to outperform and today one of the giants ICICI BANK led from the front by clocking whopping single day gains over 10%. Honestly, if banking space had not provided such solid helping hand in last three days, the Nifty would have been considerably lower from the current levels. But this is how index balancing is done. Going ahead, 18000 becomes a key support now and as long as we remain above it, there is no reason to worry for. However, we do not expect Nifty to give a complete recovery from hereon. Rather, 18250 – 18300 are to be seen as stiff hurdles and it would be a daunting task for the bulls to overcome it. As of now, banks have managed to defend our benchmark index but it has also moved quite a lot in such a short span. So if we see any profit booking there, it may not augur well for the bulls.

Apart from this, the midcap index continues to sulk and for the fifth straight session, we witnessed a decent correction in most of the high beta midcap counters. Considering the recent trend, we are certainly not used to such continuous correction in the broader market and hence, one needs stay light when it comes to these propositions.

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