Daily Market Wrap Up by Mr. Sameet Chavan - Chief Analyst - Technical & Derivatives, Angel Broking.
Today's session was clearly a nightmare for traders as the intraday price movement was similar to a double-edged sword. The Nifty opened marginally higher and gave a sudden spurt in the initial hour to conquer the 9200 mark. Everything looked hunky-dory; but, quite surprisingly to most of the traders (including us); the index took a nosedive in the latter half due to massive sell off seen across the broader market. As a result, the index closed almost at the lowest point of the day to end the session well inside the negative territory.
Today's price action must have caught most of the traders on the wrong foot and honestly speaking, this sharp decline was certainly not expected for us too. The velocity at which market corrected in the second half is terrifying and literally a confidence shattering move. Now, this is one of the days wherein you are left with no clear strategy for the forthcoming session. Hence, we would like to closely observe market movement in the coming session around key levels. As far as near term direction is concerned, it remains upward as long as 9020 remains intact on a closing basis. For the coming trading session, traders should keep a close eye on 9060, which is the 161% retracement of the small up move from 9120.25 to 9217.90. On the upside, 9125 - 9175 would be seen as immediate hurdles for the index. Traders are advised to stay light on positions and avoid taking fresh shorts until 9020 remains unbroken.