Market extends losses, Nifty below key support of 14800 : Angel Broking
(Time Zone: Arizona, USA)
Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Trading for the week started on a flat note owing to muted global cues. However, without wasting much of a time, Nifty slid into the negative terrain. The selling pressure augmented as the day progressed and all attempts of a rebound were comfortably getting sold into. Due to tail end correction, Nifty ended the session with a cut over couple of percent, marking biggest loss in the February month.
Throughout last week, we maintained our cautious stance on the market and suggested exiting longs in the zone of 15200 - 15400. In last couple of sessions, we had seen a glimpse of profit booking which eventually turned into a decent correction today to break some key supports. The Nifty has now reached to our first target of 14750 and the way its placed now, 14550 - 14470 is very much on cards. As of now, these levels should be considered a key support zone; but one needs to see how market behaves after entering it. Today, the banking space did not participate to the tune of benchmark in the correction; but going ahead, if we see BANKNIFTY sliding below its key support of 35000, it will drag the Nifty towards 14300 as well. Hence, the coming session would be quite crucial, especially for banking stocks. As far as Nifty is concerned, it has broken below '20-day EMA' and hence, any bounce towards 14775 - 14850 is likely to get sold into.
Today, the only space that outshined was 'Metal' but we are a bit unsure whether this outperformance will continue if Nifty slides below 14600. Apart from this, the broader market too saw decent correction for the second consecutive session and has closed around key supports. A follow through selling in NIFTY MIDCAP50 index will lead to strong correction in the remaining part of the week. Hence, one needs to avoid aggressive bets and should trade with a strict stop loss."