Daily Market Wrap Up - Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)
"We had a positive start for the week, citing to cheerful mood in Asian markets and a good bump up in Dow Futures early in the morning. However, it was merely a formality as we saw markets taking a complete nosedive in initial trades. Within a blink of an eye, we not only broke the sheet anchor of 9000 but also hasten towards the 8800 mark. After seeing such a knock, markets slipped into a consolidation mode throughout the remaining part to eventually conclude with over three percent cut. Today's correction was clearly a surprise for most of the market participants, including us. Especially the global peers that stood firm throughout and we didn't even rebound once looking at them, which was quite unusual. For us also, although after breaking rock solid support of 9000, some sort of long liquidation was expected but the initial move was so swift and we got deceived by a contradictory pattern on charts. Hence, going forward we need to see whether we get any follow through selling and in the process, the said pattern (Bullish Wolfe wave) gets negated or not. For the coming session, 8800-8750 would now be seen as crucial support and any decisive move below this would certainly negate the hopes of any recovery, atleast for a while. On the flipside, 8920 followed by 9000 remains to be an immediate hurdle now. It is important to note that if we have to regain any strength, we need to reclaim 9000 convincingly."