Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Yesterday's weak session was followed by a flat start in our markets, which was very much in line with sluggish global cues. However, right from the initial trade, market looked nervous and hence, we saw index sliding below 11600 at the cusp of the midsession. We witnessed some recovery post the RBI monetary policy. But it was clearly a short lived bounce back as the outcome of RBI cutting the repo rate by 25bps was already been discounted in the prices. Eventually, the penultimate day of the trading week ended tad below 11600 by trimming another four tenths of a percent.
Today's decline was just a natural extension of yesterday's profit booking. So many stocks had entered an extremely overbought territory; so they needed to cool off a bit and this is what we have seen in last couple of days. However, this certainly doesn't change the trend; in fact, it should be considered as a healthy correction to see sustainable rally in the near term. We advise traders not to look for shorting opportunities, rather use dips to buy into some quality propositions. As far as levels are concerned, we see strong support zone in the vicinity of 11550 - 11500 and we expect buying to emerge once index enters this zone. On the higher side, 11630 followed by 11663 would be seen as immediate hurdles. A sustainable move above this would push the index back to its all-time highs, which we expect to be surpassed soon.
Traders are advised to stay positive and try to identify potential candidates who have probably given decent corrections and are now gearing up for the next leg of the rally."