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

We had a sluggish start for the day in line with SGX Nifty. In the initial trade, the nervousness dragged our benchmark lower to almost test the 17800. However, the banking space provided the much needed helping hand at lower levels along with few heavyweight IT names. We did see complete recovery in the first half and in fact for a brief period, Nifty traded in the positive terrain. However, lack of follow up buying at higher levels poured water on this recovery. Eventually, Nifty ended the session with negligible loss a tad below 17900.

To summarize, the benchmark index has not gone anywhere today as we witnessed complete indecisiveness from both the counterparties. From an optimist point of view, we once again managed to defend the key support zone of 17800 – 17750 and have rebounded in relatively safer zone. However, on the contrary, 18000 remains a strong hurdle followed by 18100. Recently, we observed Nifty oscillating within a range of 550 point i.e., 17750 – 18300; but now this range seems to have shrunk further. The lower band remains the same, but the higher boundary has now shifted to 18100. Hence, till the time, we do not come of this slumber phase, it would be a very challenging period for market participants especially the momentum traders.  We reiterate that we remain hopeful and expect the market to give a decisive move in the upward direction first. For this to happen, a breakout above 18100 on a closing basis is crucial.

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