Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Despite SGX Nifty suggesting a gap up opening, we had a subdued start in our market. However, Nifty eventually joined hands with its global peers and surged beyond the 10900 mark within a blink of an eye. This was followed by some consolidation throughout the first half; however, all of a sudden the selling aggravated post the midsession which continued almost till the closing point. In the process, Nifty went on to correct more than 150 points from the day's high and nearly six tenths of a percent from the previous close.
It was certainly one of the terrible days for our market in last few weeks. Looking at the benchmark index, one would not get the right picture. But if we meticulously observe some of the index constituents, like, 'Zee' who had the biggest fall in last five years, became the spoilsport today. Apart from this, Automobile giant 'Maruti' continues with its disaster run, corrected more than 7% after posting dreadful set of numbers. There were few others stocks also had similar sort of correction today and hence, eventually Nifty succumbed to this pressure to sneak below the 10800 mark. Technically speaking, we are still hovering around the pullback zone of 'Falling Trend Line'; but the way some of the stocks corrected today, certainly does not bode well for the bulls. As far as levels are concerned, 10750 followed by 10692 would be seen as a crucial support zone. A sustainable move below this would result into a sharp correction to test sub-10600 levels in days to come.
On the flipside, today's high of 10931 has now become a key hurdle for the bulls. If index has to regain any strength ahead of the Union Budget, this level needs to be surpassed convincingly to unfold the next leg of the rally. Till then it's advisable to stay light and avoid taking undue risks."