Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We kick-started this correction last Monday with a decent gap down opening and today too, the proceedings for the week began on a weak note. The global uncertainty continues and somehow looking at the smart recovery in US markets on Friday, some hopes were built for a relief move. But, things escalated over the weekend and hence, the start was once again disappointing for traders across the globe. Today, index consolidated for the major part; but once again last hour sell off axed down all hopes as there was complete panic seen across the board. Eventually, yet another session ended deeply in red with cut over a percent.
Technically, we were looking at a strong support zone around 11250 - 11200. With today's tail end correction, this support has now been violated with an ease. Now, the final ray of hope is around 11100 - 11050, which is a combination of 61.8% retracement as well as the '200-SMA' on daily chart. Let see how market reacts around it and respects this sheet anchor or not. At present, momentum traders are advised to remain light and should avoid trading aggressively. Although, the picture has not been rosy for investors, we still believe that this decline is providing an opportunity for those who are willing to build their portfolios. Hence, better to be prepared with the list of marquee propositions and should ideally start accumulating in a staggered manner."