PSU banks became the party spoiler: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"Some cooling off in the US markets resulted into a gap up opening in our benchmarks by a small margin. However, this early morning lead was very short lived as we witnessed a hint of profit booking in the early trades. This was followed by a long consolidation in a narrow range; however, a strong bout of selling towards the fag end resulted into a nosedive below the 10500 mark.

In our previous article, we had mentioned a formation of 'Symmetrical Triangle' which was visible on hourly chart. Today's high precisely coincided with the higher boundary (10590) of this pattern and a failure to surpass this hurdle resulted into a sell off. In fact, the index went on to violate the lower boundary of 10490 in the final trades. Hence, going ahead, a sustainable move below 10455 would reinforce the selling pressure in the market. In this scenario, we may see extension of this corrective move towards 10400 - 10347 levels. On the flipside, 10527 followed by 10590 would be seen as immediate resistance levels.

The PSU banking space was the party spoiler today as we saw massive cut in individual names within this basket. Going ahead, one needs to keep a close eye on this basket as a follow-through selling may result into further dampness in the market."

Source : Equity Bulls

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