Market skids after a good start, RIL becomes major culprit: Angel Broking
(Time Zone: Arizona, USA)
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today morning, the global set up was just ideal to have a good head start for the final week of the January month. However, within few minutes of trade, market skidded sharply to not only pare down all gains but also entered a negative territory. For the remaining few hours, Nifty gyrated in a range with higher volatility and eventually managed to extend losses in last couple of hours to close tad below the 14250 mark.
On Friday, markets had hinted towards some weakness and the bears used today's gap up opening to add bearish bets at higher levels. The major culprit in today's sell off was RELIANCE, after its quarterly numbers along with few financial stocks. However, the tail end correction was mainly led by the sudden nosedive in few IT heavyweights. The banking had a solid knock on Friday, which has already weakened its short term trend and today, Nifty had a catch up move to this. At the close, Nifty is placed at crucial swing low of 14222, which remained unbroken on a closing basis. However, the way charts are shaped up, the possibility of sliding below this level is quite high to test 14100 - 14000 levels. On the flipside, 14360 - 14500 are likely to act as Immediate hurdles.
We continue with our cautious stance on the market and as mentioned in the previous commentary, traders are advised to stay light on positions. Generally, market does not give any major trend reversal ahead of the mega event; but this time, it looks like we are going to witness yet another unprecedented behaviour of the market. Next couple of days would be quite crucial and would be interesting to see whether markets correct further or it shows some resilience to protect it's crucial supports."