Harmony missing between key tradable indices: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Trading for the week started marginally higher owing to favorable global cues. However, within a few moments, the lead disappeared to decouple with global peers first. After this what we witnessed was one of the rarest actions in our market. The Nifty and Bank Nifty looked completely divergent. The direction was similar (downwards) but the proportion of the decline was extremely wide. Looking at Nifty, it appeared as if markets are consolidating with mildly negative bias; but looking at banking index, it appeared as if there is no tomorrow. Yes, many times we see Bank Nifty underperforming the benchmark but today's divergence was something different. Fortunately, Reliance and heavyweight IT counters were the saviors in case of Nifty, otherwise, taking their contribution out, the Nifty also would have closed with severe cuts.
Now let's dig into a bit of technicals. As far as Nifty is concerned, we continue to see 11050 as a sacrosanct support and till the time it trades convincingly above it, there is no reason to worry. On the flip side, if this lead has to extend, the benchmark needs to stay beyond 11250, which would unfold the next leg of the rally. Meanwhile, the range of 11250-11050 should be considered a consolidation band. Now, the breakout in either direction is solely dependent on how Bank Nifty performs over the next couple of days. If banking heavyweights extend their correction, the Nifty will see a breakdown; whereas a breakout above 11250 is out of question without the contribution of banking space.
At this juncture, traders are advised to stay light and should keep a close watch on above mentioned levels as well as scenarios. As of now, our inclination is still on the positive side and hence, we remain hopeful as long as key levels are successfully defended."