Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We had a gap down opening on the back of massive sell off seen in US bourses last night. This had a rub off effect in all other global peers and we too remained under pressure right from the word go. Post the opening, Nifty slipped into a consolidation mode ahead of the RBI monetary policy. Some volatility was seen after the announcement but eventually Nifty settled tad below the 10800 mark.
With today's correction, the gap area created on November 29 has been filled completely and hence, going ahead, 10747 would be seen as a crucial support for our market. As long as Nifty stay above it, there is no reason to worry for. However, a sustainable breach of this level would result into extended correction in the market. Hence, traders should take a note of it and should position themselves accordingly. On the upside, we may see resumption of upward move once Nifty stays above today's high of 10821. In this scenario, the Nifty may again go back to test 10900 - 10940 levels.
Today, we saw broad based selling in the market and hence, one needs to be light on positions and should avoid taking undue risks."