Market Wrap - Wednesday, 11th March 2020 - Angel Broking
Mr. Sameet Chavan, Chief Analyst Technical and Derivatives, Angel Broking Ltd.
"We have witnessed so many corrections in last 10-12 years, but the kind of volatility and ferocity we are seeing across the globe, it seems quite abnormal. In hindsight, it appears easy trading the range, but the sudden wild swings during the day can become nightmare for traders on few occasions. After one day gap, we opened lower as Dow futures were trading deeply in the red early this morning. However, a decent recovery from lows and a range bound activity thereafter resulted into a flat close for our benchmark index.
If we take a glance at our markets at the close, one would say there was no further damage in the market. But practically it does not portray the real picture. Despite major indices closing in the flat terrain, the brutality is still visible in number of stocks. Although, we are deeply oversold, everyone is just clueless and have no idea when this hammering is going to stop. Obviously, the market is irrational at times and in such kind of phases, no theory of overbought or oversold works. In our sense, traders should adopt a wait n watch approach and even if one wants to trade, avoid leveraged trades and try to get out as early as possible. For patient investors, we reiterate that such sharp declines are opportunities to add marquee names in the portfolio in a staggered manner. As far as levels are concerned, 10300 - 10200 remains to be the support zone and on the flipside, 10600 - 10751 can be seen as immediate hurdles."