Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The overnight correction (on Friday) in US bourses has weighed down heavily on other global markets. The entire Asian basket was trading well in the red and we were no exception to this. Trading for the week in our markets started with a decent gap down, catching some of the momentum traders on a wrong foot. As we generally see an 'open high' kind of scenario in such developments, we started losing further ground right from the word go. Fortunately, the selling exhausted in the latter half and we saw mild bounce back to defend the 11350 mark on a closing basis.
Friday's weak session applied brakes on the recent optimism; but if we look at it from a broader perspective, there is no major reason to worry for. We had a sharp up move in the short span, so some profit booking was clearly on cards. Thus, we advise traders not to get intimidated by this correction, rather construe this as a good buying opportunity. As far as levels are concerned, the support lies in the zone of 11310 - 11264 and on the upside, 11395 followed by 11434 are now likely to act as immediate hurdles. At this juncture, the ideal strategy would be not to have a contrarian approach and should pick out stocks that are on the move or have corrected at the support levels.
From the sectoral basket, banking index led to this last hour recovery and thus, dominance from this heavyweight index is likely to continue henceforth as well. Apart from this, 'Midcap' pocket showed tremendous resilience throughout the day and hence, one should identify potential candidates from this universe."