Geopolitical concerns haunts street, but manages to recover: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"When we closed yesterday, DOW future was trading deeply in red and there was complete turnaround seen overnight. US markets saw v-shaped recovery to close well inside the positive territory and today morning too they started with a bang. Undoubtedly we had to follow these cues and as a result, we started with a good bump up at the opening beyond the 10000 mark. Post this, market consolidated and looked a bit uncomfortable at higher levels.
Finally at the midst of the day, we got to know why markets were struggling. They probably had some hints about what happened at INDIA-CHINA border last night. The moment the news was out of 'Face-off', our markets took a nosedive and within no time, we were considerably off highs. As we all know, market never accept such geopolitical uncertainty. Fortunately, after the initial knee jerk reaction, market stabilised and then gave a steady recovery to conclude the day tad above 9900.
At the opening, things were very much in line with our expectations, as we had mentioned about the cluster of supports for DOW JONES and DAX, while they were falling yesterday. But due to some tension at the domestic front, we failed to sustain at higher levels. Despite all this, we managed to reclaim a key level and if there is no further escalation with respect to our geopolitical concerns, we would again start moving in tandem with global peers. Hence, we still remain hopeful and now with today's see-saw, the sacrosanct support can be seen in the zone of 9700-9500. On the flipside, the next leg of the rally will get unfolded once Nifty confirms a breakout beyond 10020-10050 levels."