Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It was certainly a terrible day for the bulls as we saw lot of hopeful buyers entering the market after Nifty opening with an upside gap beyond the 9900 mark and then tumbling severely throughout the session to shed nearly 200 points from the day high.
This is a typical behavior of the market when enters a strong corrective mode. As we always say, in such kind of market, one should ideally look for resistance levels rather than keep finding for supports. We have been mentioning a strong resistance zone of 9890 - 9950 and any bounce in this range; we were interpreting as a good selling opportunity. Due to today's correction, first target of 9780 has been met and now it's heading towards 9685, which we believe is likely to breach soon. We reiterate that one should avoid any kind of bottom fishing immediately as markets are poised for a deeper correction. Yes, in between you would have some bounce back; but, as a trader, such relief rallies should ideally be used as an exit opportunity for existing longs. Going ahead, 9810 - 9920 would now be seen as a strong hurdle for the index."