Markets back to record highs despite initial collapse : Angel Broking

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

"Despite being a truncated week, it was certainly an action packed as well as the volatile one for our markets, unlike recent weeks. On the inaugural day, NIfty marked a fresh record high of 13777.50 in the initial hours. However, post this, it just turned out to be a nightmare for the Bulls. The entire market just collapsed in a matter of a few hours on some global jitters to register the biggest intraday loss in the last few months. In the process, Nifty had a massive cut of more than 600 points to enter sub-13200 levels. But mighty Bulls were not willing to surrender completely as we witnessed a v-shaped recovery in the following three trading sessions to reclaim it's all time high territory.

It appears that our markets over reacted to the global development on Monday but they also remained in the front in the recovery mode as well. It looks unrealistic but we have managed to shrug off the negativity and restricted the correction to merely one and half days. Technically, the low during the corrective move precisely met with a strong support zone of the '89-EMA' level on the '180-minutes' chart. And as we alluded in our intra-week commentary, although the fall was intimidating, it was merely a correction within the larger Bull market. We are now back to record highs and the coming week would be quite crucial to understand whether the Nifty is heading towards 14000 or not. A sustainable move beyond 13780 - 13800 would lead to a continuation of the move towards 14000 - 14200 levels.

On the flipside, 13626 is the level to watch out for. If we again slide below this support, we may see some corrective move in the concluding week of the current calendar year. Let see how things pan out because the last week of the year is generally considered a muted one in the absence of Foreign Institutional investors. This week, mainly the defensive spaces like IT, Pharma and FMCG initiated the recovery, so it would be important to see what drives the market going ahead".

Source : Equity Bulls

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