Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Friday's massive sell off was followed by a flat opening in our markets. However, this was the only moment; bulls had their presence as once again we saw Nifty tumbling within five minutes of opening trade. Eventually, the Nifty ended yet another session on a weak note by shedding nearly a percent from previous close.
Last couple of day's price action certainly justifies our recent cautious stance on the index despite Nifty clocking fresh record high of 10178.95. Yes, it's agreed that the similar corrective move was seen during the first half of August and in fact, the index went on to make fresh record high in the subsequent up move. But, we would like to highlight one interesting observation. Historically, it's observed that a strong trend takes a u-turn in the second attempt and we believe that the ongoing move is a beginning of that second attempt (Considering August correction as a First attempt). Hence, going forward, surpassing the immediate hurdle of 9950 - 10000 would be a daunting task for our markets. Any bounce back towards 9900 - 9940 is likely to get sold into. Traders are repeatedly advised to stay light on positions and look to exit longs in intraday rallies. We expect continuation of this downward move towards 9780 first and then to test recent low of 9685."