Geopolitical tensions trigger sell off, back to key supports: Angel Broking

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

"On Friday, the US president Donald Trump threatened China to impose new tariff, which spooked market participants across the globe. This development triggered sell off in all global peers and was reflected in SGX Nifty too. In line with this, our markets started new trading week with a massive gap down of 400 points. In fact, the selling momentum continued throughout the remaining part of the day to eventually conclude tad below the 9300 mark by shedding more than 550 points.

In our previous article, we had mentioned a support zone at 9300-9100 and today we saw Nifty closing at the first support level. Importantly, the INDIA VIX which has cooled off considerably in the recent past, again saw a notable spike to close around the 44 mark. Going ahead, all eyes would be on further development with respect to Donald Trump's threat. In case of further escalation, we may see Nifty correcting towards 9100 - 9000; whereas on the flipside, 9390 followed by 9450 would be seen as immediate hurdles. As of now, we hope things do not worsen from here and Nifty manages to find support in the zone of 9250-9200 levels.

Traders are advised to stay light and keep a close eye on above mentioned scenarios. At present, individual stocks are providing good trading opportunities and hence, it's advisable to focus on such potential candidates."

Source : Equity Bulls

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