Global sell off extends, fortunately no major damage here: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It seems that the rising concerns over the second wave of coronavirus is haunting market participants across the globe. The US markets had already fallen nearly 10% last week and today morning, the start was very much in continuation with this sell off. This clearly had a rub off effect on our markets as well and hence, post the moderate gap down opening, we extended losses in the first half to test sub-9750 levels. Fortunately, the damage was not as severe as it was looking at one point. Due to decent recovery in the last couple of hours, the Nifty managed to reclaim the 9800 mark at the close.
Friday's v-shaped recovery turned out to be a deception for most of the bulls and including us, most of the participants expected a good start today. But markets are superior and such deceiving nature is a part and parcel of the market. Now taking a glance at the daily chart of global markets, mainly DOW JONES and DAX, we can observe a cluster of supports for both these indices and the next couple of days could be the trend deciding sessions. At our end, we still remain hopeful and expect the Nifty not to fall below 9500 now. Before this, 9750 - 9675 can be seen as intraday supports. On the flipside, 9925 - 10000 remains to be a sturdy wall and if the index has to regain any strength, it needs to again enter a five-digit territory soon.
At present, traders are advised not to get carried away by this global sell off and should ideally stick to stock centric approach. The midcap index is interestingly poised and hence, if we see a reversal in major indices, the broader market is likely to outperform."