Global uncertainty shakes our markets again: Angel Broking

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

"Our markets started the proceedings for the expiry week on a muted note owing to sluggish global cues. However, as the day progressed, the trend became cautious on the back of global jitters, especially from Europe. Due to the broad based selling for the major part of the session, the Nifty went on to almost kiss the 11700 mark. Fortunately, the fall got arrested in the last hour to restrict today's correction slightly over a percent.

Last week, we witnessed some choppy moves but the overall bias remained positive. In fact, we had mentioned how multiple technical indicators are in favour of bulls. All those observations still remain valid as long as we hold strong as well as crucial support zone of 11700 - 11660. Below this the short term trend reverses and hence, one should avoid aggressive longs in the market thereafter. Till then interpret this as a reaction to global development and stay hopeful for recovery. For the coming session, 11820 followed by 11850 would be seen as immediate resistances.

Today, the breadth was extremely negative and the midcap index which was placed at an interesting level, saw some decent correction. Banking too corrected, but the major culprit in today's weakness was Reliance. We reiterate that the volatility is likely to be on the higher side as we move closer to the US Presidential election. Hence, traders are advised to stay light and keep strict losses for positions."

Source : Equity Bulls

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