Sharp intraday correction in Nifty, but manages to close in the support range: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):

"The global markets indicated negative sentiments in morning due to the correction seen in US markets post announcement of the Fed policy. The Nifty too opened with a gap down of about 50 points and corrected to breach the 11000 mark. Infact, a sharp sell-off was witnessed during the later half of the session and at one point, Nifty was down by more than 200 points. In the last half an hour, index recovered some of the losses and managed to close tad below 11000, down by one and a quarter percent.

Post some recovery from lower levels in yesterday's session; it seemed that the index was geared up for some pullback move. However, the negative sentiments from the US bourses led to a gap down opening and a follow up selling was seen during the day. Fortunately the last half an hour witnessed some recovery from the intraday lows and the index has managed to end within its support zone of 10950-11000. Also, today's low was marked around the '89 EMA' support on the weekly chart which is placed around 10860. Hence, the index is now trading in the vicinity of its support zones and thus, short term traders should now avoid taking any short bets at this level. On the flipside, 11080-11115 is the immediate resistance zone and a crossover above the same is required for a probability of a retracement rally of the recent correction. Along with the above mentioned levels, traders are also advised to keep an eye on the market breadth as it has been a leading indicator of the trend in the recent past.

Amongst sectoral indices, the BankNifty is trading around its '200 DMA' support and the Nifty Midcap index too is trading at its important support zone. In case there are some signs of pullback in today's session, then one should be vigilant on stocks within this space."

Source : Equity Bulls

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