Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Mostly, in a strong up trend, if market has to undergo some kind of correction, we see that pain coming out in the first half of the week and the latter part tries to make up for the damage. Similar thing was witnessed during the week, the index first took a nosedive from Monday's high and then remained under pressure; courtesy to relentless appreciation in US Dollar against the Indian Rupee. Till last week, our markets could handle up to the 71 mark; but the moment this level crossed, it called for some kind of panic in the traders' fraternity. But, fortunately, the end was good for the week after USDINR cooling off a bit and hence, Nifty managed to recoup some losses to close tad below the 11600 mark.
Technically speaking, we did witness a 'Bullish Hammer' pattern getting formed during the midst of the week and it has shown some significance of it. But now, first half of the forthcoming week would be quite crucial in order to draw the immediate route map for the market. The index will have to convincingly traverse the strong resistance zone of 11640 - 11700, if it has to gain some real strength in the near term. It looks possible considering the broader market participation; but as a trader, one needs to be closely tracking how index behaves around those important levels. On the lower side, 11484 followed by 11436 would now be seen as immediate and crucial supports.
At this juncture, a strategy would be to focus on individual pockets that are providing better trading opportunities. As far as sectoral watch is concerned, the 'Metal' pack was on a roll and considering the positive chart structure of 'Nifty Metal' index, we expect further legs to unfold in this space. Apart from this, after some early damage, the midcap index has managed to recover fair bit of ground in last couple of days and hence, do watch out for more action in this universe as well."