Stellar move in broader market, benchmark erased gains: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The global set up was just ideal today morning to have a head start for the new trading week. We began convincingly above 11500 and then slipped into a consolidation mode for the major part of the session. However post the mid session, the benchmark took a nosedive and within a blink of an eye, we not only pare down gains but also sneaked well inside the negative territory. Fortunately a modest recovery at the end reduced the damage on a closing basis.
Practically, post the opening, nobody was even bothered looking at indices; because lot of stocks from the broader markets just took off right from the word go. As far as index movers are concerned, the IT space took the charge today and witnessed some steller moves throughout the day. However, the banking looked a bit tentative post the initial up move which was very short lived. In fact, post the midsession, banking stocks came off sharply and turned out to be spoilsport along with the recent mover RELIANCE, who witnessed some profit taking today. As a result of all this, the Nifty corrected precisely after entering a strong resistance zone of 11550 - 11650. On the flipside, 11400-11350 would be seen as crucial supports.
The kind of sudden fall we witnessed today, clearly suggests that we are still not out of the woods and hence, it's a kind of reality check for complacent buyers that we are going to see at regular intervals till the time uncertainty gets eliminated. Hence, it's advisable to continue with a stock specific approach but at the same time, it's important to take timely profits and avoid aggressive bets overnight."