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

Yesterday’s session was terrible for equity markets across the globe; however today morning, the picture improved a bit. The Dow futures were trading with a decent up tick early this morning which had a rub off effect on other Asian bourses as well. No brainer, our markets too started with a good bump up and then extended gains in the first half to even surpass the 16900 mark. However, post the mid-session, we witnessed some nervousness at higher levels which resulted into a sharp profit booking to erase some portion of gains.

We had a smart recovery towards 16900 after posting a low yesterday around 16400. With reference to our previous commentary, we had mentioned how gap area around 16840 – 16966 should be treated as important hurdle. Today when it appeared as if we are going to challenge the 17000 mark, this gap area proved its significance as we witnessed a sudden decline after nearing the higher end of the gap. We reiterate that if market has to confirm its near term bottom, Nifty needs to surpass 17000 – 17200 with some authority. Till then we are not completely out of the woods. For the coming session, 16840 – 16966 remains to be a strong resistance zone; whereas on the lower side, 16680 followed by 16500 are to be seen as intraday supports.

We advise traders not to be in a hurry to make any kind of bottom fishing; rather keep focusing on stock specific moves on both sides. But for investors with a slightly longer horizon, one can now start accumulating quality propositions in a staggered manner.

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