IGI Logo

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

Yesterday’s smart recovery was followed by a decent bump up at the opening today and cheerful mood across the globe provided impetus for this head start. This gap up might have caught so many overnight traders on the wrong foot and hence, there was a complete gush seen in the initial hour to cover shorts. As a result, all key indices extended their relief rally and remained steady post the RBI monetary policy, which turned out to be a non-event.

Due to back to back two great sessions, our markets are off Monday’s low considerably. Point wise, Nifty recovered by nearly 600 points and for BANKNIFTY its whopping 1600 points. If we refer to our last couple of days’ commentary, this relief move was no surprise for us and despite we maintaining our directional cautious stance on the market, we managed to participate in this recovery to a great extent. Now from here on things may not be as easy as it was. We are now about to enter a cluster of resistance i.e. 17500 – 17600 – 17700. Market has closed on a strong note today and hence, we may see further extension of this as well; but we still do not have the conviction of it moving beyond the higher boundary of 17700 in this leg. Let’s see how things shape up going ahead and if any such  complete shift of sentiments has to happen, the banking space once again becomes the deciding factor. For the coming session, 17300 followed by 17200 are to be seen as immediate supports. Although, individual stocks are providing excellent opportunity on the long side, now it’s time to apply some brakes on the aggressive approach and should ideally look to book timely profits in existing positions. Next couple of sessions would really be interesting to watch, because all key indices are now trading around the crucial levels.

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