Geopolitical tensions spooked trades, but still managed to defend key support: Angel Broking
“We had a gap down opening today with a fair margin on the back of some early morning geopolitical concerns. In fact, this weakness extended in the initial hours to sneak below the 10750 mark. Fortunately, this decline eventually got bought into and we had a smart recovery post the initial correction to eventually conclude the volatile day by losing four tenths of a percent.
Looking at yesterday’s strong close, the probability of surpassing 10900 today was quite high. But, such developments on geopolitical front can spoil the mood. This is exactly what we saw in the opening hour today. Now, due to today’s wild swings, we can see a defined range at least for next couple of days. On the upside, 10890 is the level to watch out for as we may see index extending this relief rally towards 10950 – 11000 after surpassing this hurdle. On the flip side, 10800 followed by 10729 would now be seen as key support levels. It’s advisable not to trade aggressively if index remains within this range.
We must accept the fact, today although we can see index closing in the red, the v-shaped recovery from lower levels was quite encouraging. In fact, there were plenty of individual stocks that had a remarkable day and hence, it’s advisable to keep focusing on such potential targets.”