October series concludes above 11600: Angel Broking

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

"Global markets witnessed a complete mayhem last night and after this, they took some breather very next morning as we saw Dow Futures trading with a decent uptick over 250 points. Hence, the damage was not that big at the open in our market. In the initial trades, Nifty immediately slid towards the 11600 mark but all of a sudden, the strong buying emerged at lower levels to reclaim 11700 around the mid session. But since the volatility has increased drastically over the past couple of days, this recovery got sold once again to test morning's low. Fortunately, the key support was defended eventually in this roller-coaster move to conclude the October series above 11600.

Since the last few days, almost all chartists are keeping a close eye on 11660 and has been considered a strong as well as crucial support. On several occasions, we also mentioned about staying hopeful till the time this support is not violated convincingly. Today, despite global sell off, our markets successfully defended this level on a closing basis. On the hourly we observed a 'Bullish Wolfe wave' pattern early in the morning but refrained from taking long to avoid the immense volatility and wild swings on the expiry day. We still remain hopeful but the real conviction will now come only after Nifty surpassing the intermediate hurdle of 11770 - 11800 and if this has to happen, globally we need to have some respite and for us, the banking should resume the upward trajectory. For the coming session, the intraday support is at 11600.

Today, despite the index struggling for the most part of the day, there were a bundle of stocks who were bucking the trend and have shown some encouraging moves. Also, if we take a glance at the midcap index, it is still interestingly poised. Let see how we tackle this global volatility and let's hope for concerns to subside."

Source : Equity Bulls

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