Weekly Market Wrap Up : Last week, the Adani Group fiasco struck our markets like a comet Says Mr. Sameet Chavan, Angel One
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Below is on Weekly Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd
Last week, the Adani Group fiasco struck our markets like a comet. The spillover effect of this carnage triggered a massive sell-off in the banking space, which then spread across the broader market. Around mid-week, the finance minister delivered a stellar ‘Budget’ and markets gave a complete thumbs up to this event. We hastened towards 18000 on the same day itself; but once again, the escalating dark clouds with respect to Adani group poured complete water on this optimism. Our markets took a nosedive to not only pare down gains but also ended well inside the negative terrain. Fortunately, things cooled off a bit towards the fag end of the week, which resulted in a smart recovery to reclaim the 17800 mark on a closing basis.
Although, we managed to recover lost ground this week, we are still not completely out of the woods yet. A continuous news-flow with respect to the Adani group is likely to give volatile swings on both sides. As far as levels are concerned, the immediate support is visible around 17600; but the major sacred zone remains at 17400–17300, which coincides with the ‘200-day SMA." Ideally, until we defend this, there is no real reason to worry. On the flipside, if we have to regain our pride, the Nifty needs to surpass 18000–18100 on a closing basis. This will confirm the completion of the recent corrective phase, and the market can then resume the higher degree uptrend.
Traders are advised to keep a close tab on all these above-mentioned scenarios and should remain updated on global as well as domestic developments. The banking space needs to be closely watched; because it is likely to act as a catalyst for setting the near-term direction for our market. Apart from this, a lot of thematic moves started playing out well towards the end of the week. One must keep focusing on such potential trading opportunities.
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