Once again global concerns spooked market participants: Angel Broking

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

"We had a nervous start on the back of weak cues from the Asian peers. After consolidating for a while, the selling pressure aggravated in the midst of the day and in this course of action, the Nifty went on to sneak well below the 10800 mark. Fortunately, the selling pressure got arrested after making a low of 10735.05 and due to some modest recovery, index managed to shave off some part losses to conclude with over a percent cut.

Honestly speaking, looking at yesterday's tail end buying, we were not expecting this sort weak session today. The Nifty was literally on the cusp of surpassing its recent hurdle of 10924. But as market surprises us most of the times, it certainly left us clueless with such kind of sell off in the broader market. However, having said that, it would be too early to call it a reversal. Technically, Nifty has managed to find support today precisely at the '200-SMA' on hourly chart. Hence, going ahead, today's low of 10735 would now be seen as a crucial support for the market. On the higher side, a sustainable move beyond 10810 would push the index back to test 10870 - 10924 levels.

Since, today's correction was mainly a knee jerk reaction to sell off seen in the global markets. One needs to keep a close track on how things pan out globally and in case of some positive developments on the global front; this would certainly infuse strength in our market to break key hurdles."

Source : Equity Bulls

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