Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today, clearly the global bourses spoiled the party for our markets. After yesterday's encouraging close, we had a gap down opening on the back of massive sell off seen in all major global indices. To worsen this, our markets corrected sharply post the midsession to pare down all yesterday's gains and in fact more than that to conclude the session with a cut of a percent.
In our previous article, we had stated about index placing at a crucial juncture. Ideally, we would have taken a call about Nifty extending this relief move today; but since, it's a zone of multiple resistances; we chose to wait for further developments. Today's correction proves the significance of this sturdy wall of 10750 - 10850. Now the question is whether this is just a breather or corrective phase has resumed once again? In our sense, it would be too early to take this call. We are in a 'No trade zone' of 10600 - 10800 at this moment. We would wait for a decisive move outside this mentioned range which would dictate the near term trend. Hence, traders are advised to remain light within this range and a breakout on either side would provide better trading opportunities.
Here, the banking index would play a vital role and if Nifty has to go beyond 10800, the heavyweight banking counters needs to contribute heavily. Also, the midcap index has been struggling around its recent highs as we can see all attempts in last 6 - 7 sessions to surpass the resistance have been sold into. Hence, one needs to closely keep a watch on this development as well."