Global uncertainty continues, we are back to crucial level of 11000: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Two weeks back we were comfortably above 12000 and within no time, benchmark index corrected nearly 10% and we are standing tad below the 11000 mark. Things became gloomy once the coronavirus started spreading outside china rapidly and uncertainty with respect to this spooked market participants across the globe. Throughout this week, we had some respite after last Friday's meltdown; but once again yet another Friday turned out to be a nightmare as we grappled with global as well as domestic worries. Last night, RBI suspended 'Yes Bank' board and put it under the moratorium for 30 days; this triggered panic sort of situation in market participants and as a result, we started the day with a massive plunge at the opening. Fortunately for us, things did not worsen from there; in fact, a modest recovery trimmed some portion of losses.
Now, let us see how charts are shaped up and what would be the possible path of action for our markets in the forthcoming week. Global markets are surrounded with uncertainty related to Coronavirus and hence, we need to see how things pan out over the weekend with respect to this. Largely, the immediate direction would be dictated by this development. Technically speaking, we can see bears getting exhausted a bit after today's massive knock at the opening. We are seeing 11000 as a key support and we are almost close to it. If things cool off a bit over the weekend, we may see some bounce back towards 11250 - 11400. However, surpassing 11400 is still a daunting task for the market. On the flipside, 10900 followed by 10800 can be seen as immediate supports. Momentum traders are advised to stay light and should ideally avoid taking undue risks. However, for investors, such panic situation is an opportunity to grab some marquee names for their portfolios."