Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today, we started slightly higher but similar to recent trends, this gap up opening was merely a formality and in the initial hour, we were back to yesterday's low. Once again, we saw some respite at lower levels and in the penultimate hour, index surged towards the 11400 mark. Things looked good but mighty bears had other plans as we saw a complete nosedive once we stepped into a final hour. In the process, we erased all gains in a flash and due to mild recovery towards the end, Nifty closed with marginal losses.
Technically nothing much has changed and the real pain still lies in banking which was the major driver since many months. The overall chart structure and levels remains the same as we had highlighted in the previous article. The major support zone lies at 11300, which is the convergence point of multiple technical evidences. If we manage to hold it, a possibility of similar kind of intraday rally cannot be ruled out. In this scenario, 11400 - 11500 are the levels to watch out for. We reiterate that the overall chart structure has been distorted and till the time we are below 11650 - 11700, intermediate rebounds should only be treated as a short term relief. On the flipside, a sustainable breach of 11300 would extend this correction towards 11200 - 11108 levels.
At present, traders are advised not to trade aggressively and should refrain from catching falling knives from high beta universe. However, we still believe that, traders'/ investors' with a slightly broader perspective, should accumulate quality propositions in staggered manner in this on-going decline."