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 "Weekly Market Wrap Up" by  Mr. Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

Our market started the week on a mild note taking cues from the weak global markets, but the dip augurs well for the bulls initially, and the Nifty has seen two consecutive days of positive closure. As the week progressed, our markets seemed tentative at the higher grounds, and the weakness in the global markets eventually dragged the indices lower by the weekend. The benchmark index witnessed a correction consecutively for the second week and ended the session a tad above 17300 with a cut of over 1.16 percent to the previous week’s close.

Technically speaking, the last session of correction has dampened the overall sentiments as the significant support of the unfilled gap got breached decisively, implying strong momentum in the sell-off. The weakness in the global markets and the upcoming key domestic data have put a sense of tentativeness among the market participants. As we have witnessed a decisive breach below the major support zone in Nifty, one should not rule out the possibility of it testing the immediate swing low of 17150 odd zone, while the sacrosanct support lies at the psychological mark of 17000. On the flip side, a series of resistances could be seen starting from 17500 to 17800 in the comparable period.

Considering the recent price action, traders are advised not to carry aggressive overnight bets for a while and should adapt the strategy to follow one step at a time and respect levels on either side. The unfavorable global scenario was one of the major catalysts for the fall in the week; hence, one should stay abreast with global developments and the upcoming key domestic macro data. Also, one can continue to focus on individual stocks as the thematic moves are still playing out well in the market.

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