Market tumbles on geopolitical concerns: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Our markets started the week around the previous week's close. The index traded within a range till noon, but it then corrected sharply on back of sell-off in the global markets and ended with a cut of over a couple of percent at 11250.
The indices looked tentative during the pullback move in the last week around the 11600 mark. We started the session on a flat note today and consolidated within a range till noon. It seemed that the markets were just waiting for some reason to correct and the sharp correction in the global markets provided an impetus for our markets to correct. The broader markets too gave up along with the index heavyweights and the recent underperforming banking index once again witnessed a sell-off to drag the markets lower. One after another, the supports breached with no pullback moves and the indices ended with a loss of over 2 percent in Nifty and over 3 percent in Bank Nifty. Post the recent bearish pattern formation on the weekly charts, the indices had entered a corrective phase and after a pullback move during last week, we have resumed the corrective phase today. On the daily chart, we can observe a formation of a 'Head and Shoulders' pattern and Nifty has closed right at the neckline of the pattern. Thus, a continuation of the downmove could lead to further sell-off and hence, we continue with our recent advise for traders to stay light on positions and avoid overnight positions.
As far as levels are concerned, 11185 and 11110 are the intraday supports; followed by the short term support at the '89 DEMA' which is around 11940. On the flipside, 11335 and 11450 are now the immediate resistances."