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Below is the Quote on Daily Market Wrap Up By Mr. Osho Krishan, Chief Analyst-Technical and Derivatives, Angel One Ltd

The weak macro factors over the rising inflation and the upcoming Fed policy have created havoc in the global equity market. The repercussions were also seen in our equity space, which started the week on a fragile note with an initial gap down of nearly 2 percent, which got aggravated as the day progressed. The timidness across participants was evident as the market did not showcase any sign of reversal or strength at the lower levels. Finally, the benchmark index concluded the day with a cut of over 2.64 percent at the 15774 level.

On the technical front, the initial gap down has negated the intermediate support of the psychological mark, and the benchmark index plummeted lower towards the critical swing low of 15700 sub-odd zone. The turmoil across the bourses has undoubtedly dampened the sentiments, also the participants’ woes over the domestic inflation data. As far as levels are concerned, any breach below the 15670-15700 swing zone could disrupt the charts, and the index could plunge lower towards the 15500 mark. On the contrary, the 16000-16100 is likely to be seen as a daunting task for the bulls in the near term.

Going forward, any relief from the ongoing selling saga on the global market could only provide some sign of respite to our domestic market. Meanwhile, the pragmatic strategy would be to stay light on positions and keep a stock-centric approach for trading opportunities. Also, it is advisable to keep a close tab on the domestic macro developments alongside the mentioned levels.

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