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

The global set up was pleasant to kickstart the new week on a cheerful note. Post the gap up opening, our markets gradually moved higher to test the 17400 mark around the midsession. Post this, there was not much activity seen in benchmark index as we witnessed a range bound movement with some hint of profit booking towards the end. Eventually, Nifty ended the session convincingly above 17300 by adding nearly one and half a percent to the bulls’ kitty.

The global uncertainty subsided in last couple of sessions and as a result, we witnessed some recovery in our markets too. From an optimist point of view, we managed to defend sacrosanct support of 16800 first and then due to some respite in last 3 – 4 sessions, we are very much in the safer terrain now as we are stepping into a mega event, Union Budget. Historically, this day is considered to have a wider range and therefore the higher volatility. Hence, traders are advised to stay light and wait for things to settle post the event. Ideally, it is very difficult to pre-empt any kind of direction post this, but if we consider last year’s price action only, we had similar price correction slightly ahead of the budget and from this day onwards last year, markets just took off. So we are hopeful for ‘History to repeat itself’ and there couldn’t be a better place for it where we are standing now. Let’s see how things pan out tomorrow and it’s advisable not to trade aggressively at least in the first half.  

As far as levels are concerned, 17050 to 17500 is the immediate range to watch out for but on such days, it would be wise to have slightly broader horizon and hence, 16800 – 17700 can be seen as a practical range. Just to give you all a caveat, since such events can be tricky, as a trader one cannot completely shrug off the impact in case of any unfavorable outcome. A close below 16800 would lead to some challenging days for our market.

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