Market corrects sharply amidst global tensions: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"The indices started the week with a gap down opening on the rising tensions between US and Iran over the weekend. Post the gap down opening, selling pressure was witnessed throughout the session and the index ended tad below the 12000 mark, with a loss of almost 2 percent.
During last week, Nifty had consolidated in the range of 12100-12300 and that seemed to be a consolidation before the index resumes its uptrend. However, uncertain global environment led to a negative opening and the index breached the support of 12100 with an ease during the day. This lead to a sell-off for the rest of the session and since we had seen some sparkling moves in many stocks in last couple of weeks, it seems traders and investors chose to take money off the table amidst uncertain environment. Today's move certainly does not depict an optimistic picture and thus, we could see some volatility in the near term. On pullback moves, 12120 and 12200 will be the immediate resistances now and the bulls will have a herculean task to surpass this immediately. On the flipside, the near term support is placed in the range of 11850-11800 which is the recent swing low along with the '89 DEMA'. Traders are advised to stay light on positions till the volatility settles down and look for some buying opportunities if the index corrects towards the mentioned support range as the risk reward ratio could turn favorable there."