Expiry factor caught many traders on the wrong foot below 10000: Angel Broking

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

Although, this bounce back was mainly driven by some cool off in US bourses; the 'Expiry Factor' in our markets certainly had the major role to play in this relief rally. Despite Nifty sliding below 10000 on Friday, the put writers did not run for shelter and in fact stood firmly to enjoy this broad based bounce back move. Today, there was a sort of consolidation with a positive bias to close tad below the 10200 mark.

Last two day's move must have caught so many traders on the wrong foot that went short after breaking the psychological five digit mark of 10000. Mostly, this is how market behaves when the consensus stat moving in the same direction. For this expiry, we were seeing 9950 - 9900 as a strong support zone as we saw couple of key Fibonacci ratios converging around it. Having said that this does not change the broader picture and hence, we expect market to face some selling pressure if Nifty rebounds in the range of 10250 - 10350. Tomorrow being an expiry day, 10200 - 10230 would be seen as a strong hurdle for the index. A failure to surpass this zone would result into some profit booking towards 10160 - 10130 levels.

For the coming day, we expect continuation of this consolidation in benchmarks and thus, traders are advised to keep focusing on individual stocks with a proper exit strategy."

Source : Equity Bulls

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