No respect for 200 day SMA as well: Angel Broking

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

"Today's gap down opening was very much in-line with what SGX Nifty was suggesting early in the morning. However, things worsened as the day progressed and in the course of action, the Nifty corrected more than 300 points on an intraday basis. There were couple of attempts made to see some respite but all got sold into as the selling pressure was quite fierce at higher levels. In terms of index, today was a terrible day for our benchmarks as it was the biggest single day loss (on closing basis) in the recent past.

Most of the participants have been talking about and keeping a close eye (with some hope) on how index behaves around the daily '200 SMA' placed in the zone of 10800 - 10770. Market had no respect for that level as we witnessed a gap down opening below it and then extension of the fall thereafter. As a result, now, a gap area has been formed (10754.70 - 10843.75), which would now be seen as major hurdle. Before that 10675 is likely to act as an immediate resistance. On the downside, today's low coincides with 28th June low, from where the previous rally started and hence, it requires some attention. Recently, markets have not given respect to any support and hence, traders are advised to stay light and should avoid taking undue risks.

Today, so many heavyweight index constituents corrected brutally and OMCs who seemed to give some relief move plunged ferociously in last 20 minutes of trade after the unfavorable announcement from the Finance Minister."

Source : Equity Bulls

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