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

Globally, most of the markets have been doing well since last few days and today morning too, we had favorable cues from the peers. We kick-started the week on a positive note as indicated by the SGX Nifty tad above 17600. During the first half, we witnessed some consolidation with some hint of profit booking. However, the selling aggravated as we stepped into the second half and as a result of this, market came off sharply to eventually close below the 17400 mark by shedding nearly eight tenths of a percent from the previous close.

It was certainly a bright start to the week but as we entered into the corridor of uncertainty, market started to feel some heat. Due to reinforced selling, we not only erased morning gains but went on to close well inside the negative terrain. If we look at today’s price action in hindsight, we must accept that market has respected levels and as we alluded to in our previous commentary, a cluster of resistance around 17600 – 17700 has proved its significance. The coming session would be quite crucial for market; because an extended correction from hereon will lead to resumption of recent downtrend. As far as levels are confirmed, 17200 – 17100 are to be considered as next supports; whereas on the higher side, 17500 – 17600 – 17700 remains to be a cluster of resistance. Traders are advised to stay light and although there was stock specific profit booking seen today, one can still continue with the same approach as we expect trades to happen in both direction.

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