Negative global cues weigh heavily on the expiry day: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"The negative global cues weighed down heavily on our markets today as the Nifty opened gap down and then corrected throughout the day to end with a loss of almost 3 percent.
It was one of the worst expiry day for our markets in the recent past as the indices corrected sharply along with the broader market. There was no respite for any of the index as all the sectors, including the recent out performers took a sharp knock. The index has already been in a corrective phase since the start of this month and Nifty has breached its supports one after another. Nifty has now approached its '200 DMA' around 10760 which is another important support. However, as of now there are no positive signs and hence, we continue with our cautious approach on the markets. There could be some pullback from here as we have approached the '200 DMA' which coincides with some important retracement levels as well. However, markets are likely to face selling pressure on pullback moves and hence, one should avoid any aggressive contra trades. The 'Dollar Index' which we had recently highlighted for its breakout has moved higher which too is not good for the equity markets. The immediate support for Nifty is placed in the range of 10800-10750 followed by 10670, whereas 11000-11100 will be seen as resistance on pullback moves. Thus, we continue with our advice for traders to stay light and avoid overnight positions."