Crude oil spoils the party, crucial support at 11549: Angel Broking

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

"A sudden spike in crude oil prices spooked traders' fraternity across the globe and we being the most sensitive economy had a massive impact of the same. Our markets began marginally lower but within a blink of an eye, we were off more than 70 - 80 points to sneak below the 11700 mark. It was followed by some consolidation till the midsession; but as the second half underway, the selling intensified across the broader market and hence, yet another bout of sell off eventually dragged the Nifty below 11600 on a closing basis.

It was certainly not the kind of trading day most of the market participants would have wished for. During the day, index kept on breaching few key intraday supports one after another. Due to last couple of days' correction, the breakout happened last Tuesday has now been negated. With this, we are very much close to crucial support of 11549. Traders are advised to keep a close eye on this key level. A violation of this point on a sustainable basis could trigger further correction to see lower levels of 11475 - 11400 or may even get worsen. As of now, we would hope for crude oil to cool off a bit or may be some other development which would act as a savior for our markets.

At this juncture, the ideal strategy would be to stay light on positions and take all the above mentioned scenarios into a consideration. It's better not to pre-empt any kind of moves and rather try to adopt a confirmatory approach for a while. As far as resistance levels are concerned, 11653 followed by 11705 would now be seen as immediate hurdles."

Source : Equity Bulls

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