10k defended at the financial year end: Angel Broking

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

Today's gap down was mainly on the back of a sharp overnight sell off seen in US markets. We opened lower and then slipped into a consolidation mode for the major part of the day. Due to some volatile moves in the final hour, the Nifty declined a bit to conclude the financial year tad above the 10100 mark.

Barring last couple of months, this financial year has been one of the memorable one for Indian stock markets. Although, we lost 10% from record highs, our markets closed 10% higher from March 2017 close (i.e. 9173.75), which still is a great achievement for our benchmarks. With a near term view, the tide has certainly turned lower post the union budget and is likely to continue for some time as well. For the coming week, 10230 - 10350 would be seen as a strong resistance zone; whereas, on the lower side, 10049 followed by 9951 would act as a crucial support zone. As long as Nifty remains within this range of 10230 - 9951, we expect the consolidation to continue, during which lot of individual stocks would provide better trading opportunities.

Honestly speaking, today's close does not indicate whether market rebounds first or continues to slide further. Hence, although we continue with our recent cautious stance, traders need to keep a close eye how market behaves during the first half of the forthcoming week. Ideally, at present, traders need to be prepared for both possibilities, a small relief rally or a continuation of the ongoing down move."

Source : Equity Bulls

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