Some volatile swings ahead of weekly expiry: Angel Broking

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

"Today early morning, Dow future was extremely volatile as it was reacting to the debate conducted between the US presidential candidates. Initially it was firm but post the conclusion of the same, Dow future just nosedived and despite this, our markets opened slightly in the green. During the remaining part, we witnessed some volatile swings in a band of 100 points to end marginally in the positive territory.

The kind of price action we witnessed today, was clearly a nightmare for momentum traders. Because the moment one decides where market is going, it just reverses and moves in opposite direction. This scenario was repeated more than a couple of times and hence, it turned out to be an extremely difficult day for traders. Basically, Nifty was trapped in a range of 11200-11300 and it appeared as if the options writers had the edge today one day ahead of the weekly expiry. As per our recent directional view, we still see 11300-11350 as a sturdy wall and till the time it's not crossed convincingly, we may see some profit booking at higher levels. However, on the lower side, if any weakness has to trigger, the Nifty needs to break below 11180-11150.11180-11150.

Let see which way market is willing to go as we step into the October month. Today, the banking index was the first one to drag benchmark lower but a smart recovery in the latter half was encouraging. So, banking as always plays a vital role and the next path of action is very much depended on its movement going forward. Although, we have been a bit cautious since few days, after the recovery from last week's low, market are not willing to fall. So next 2-3 sessions would be quite crucial and accordingly, we shall reassess the situation."

Source : Equity Bulls

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