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Below is quote on Some respite to kick-start the festive week, nearing hurdles by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

Last week’s corrective move was followed by a decent gap up opening to kick-start the festive week on a cheerful note. In the initial hour, market gave up some gains but fortunately at lower levels, the strong buying emerged across the broader market. In fact as the day progressed, the buying momentum accelerated to reclaim the 17900 mark. Eventually, Nifty ended the session with nearly one and half a percent gains.

Markets were extremely oversold and after testing the key support of 17600, some respite was on cards. It’s certainly a good start as we have stepped into a Diwali week. Generally market do not correct in this week and looking at today’s strong rebound, market seems to be repeating the history. However we are still not completely out of the woods as we can see multiple hurdles in the vicinity of 100 – 150 from hereon. Technically speaking, Nifty has precisely closed at the ‘200-SMA’ on the hourly chart and not far from here, we can see previous important support zone of 18000 – 18100, which is now likely to act as strong resistance. Hence, unless we do not surpass 18100 and stays above it, we may see some profit booking to come again. Hence, momentum traders are advised not to get carried away, till the time important levels are not reclaimed. On the flipside, 17800 followed by 17700 are to be seen as immediate supports.

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