Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today morning, the global set up looked a bit encouraging (especially HANG SENG) and hence, in-line with Asian peers, we started proceedings for the week slightly higher after Friday's tail end correction. However, it was merely a formality as we saw index correcting immediately to pare the opening lead. This was followed by a continuous decline throughout the remaining part to eventually conclude well below the 11700 mark.
It was certainly not the kind of start for the week, most of the traders would have wished for. There was sustained selling seen throughout the day and importantly, we could see broad based participation in this decline, which generally does not bode well for the bulls. We have slipped below the key support of 11779 and extended the correction towards 11650. Since last few days, there has been no respite for this downward move; but looking at the broader picture we are still not convinced with the same. Hence, we advise traders not get carried away by this correction and should ideally be prepared for an upward swing if the buying emerges at lower levels.
On hourly chart, we can see a formation of bullish 'Wolfe Wave' pattern and as per the requirement, 161% retracement of the recent up move coincides around 11630 - 11610. Going ahead, we will not be surprised to see this fall getting arrested around the mentioned support zone. Hence, one should avoid fresh shorting now and should be prepared with potential candidates which may give decent relief moves."