Some pause after recent marathon run: Angel Broking
(Time Zone: Arizona, USA)
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today morning, the global peers looked a bit nervous and hence, we had a sluggish start to the trade. Till the mid session, markets corrected marginally but it was more of a sideways movement with mildly negative bias. However, as the Finance Minister's press conference started, we witnessed some weakness to sneak below the 12650 mark. Fortunately, the market started to rebound from a kissing distance of 12600 post the press conference and eventually, ended the session with less than half a percent cut.
Finally, after eight days of marathon rally, the market ended its winning streak. One shouldn't be too wary about it, because most of the events are behind us and technically, markets were a bit overstretched. So, some sort of breather was very much on cards. In fact, with reference to our previous article, we had mentioned how Nifty precisely met with it's initial target of 'Bullish Flag' pattern around 12750 - 12800. But by no means, we expect a big price correction from here on, rather any decline is an opportunity to go long with a short to medium term view. Market generally experiences either 'Time' or the 'Price' correction. Looking at the recent development, we would rather expect the first scenario where we may see benchmark spending some time in a band of 400 - 500 points before resuming its northward trajectory. As far as levels are concerned, 12750 - 12800 remains to be immediate levels in the upward direction; whereas on the lower side, 12600 followed by 12530 are likely to provide decent support for the coming session.
Sectorally, banking was the major culprit today as traders chose to take some money off the table after the recent mesmerizing move. But the real action still continued in the broader market, which we believe is likely to be the flavor post Diwali as well. So it's better to identify such potential themes and the apt candidates to fetch some handsome returns in coming days."