IT comes to the rescue, broader markets under pressure: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"The SGX Nifty hinted at a positive opening today and in line with the expectations, our markets started trading for the week on a positive note above the 11600 mark. The index then consolidated in a range throughout the session and ended the day tad below 11600.
The index heavyweight 'Infosys' announced its quarterly results over the weekend and the market participants gave thumbs up to its better than expected numbers. The stock opened the session with a gap up opening and rallied throughout the day which had a positive impact on the Nifty index too. The stocks from the IT space contributed about 65 points in Nifty today, however, the broader markets traded with a negative bias as the market breadth was in favor of the declines. The Nifty has consolidated in a range since last few sessions in which the earlier support of 11640 has been acting as a resistance now. Hence, the index needs to convincingly surpass the hurdle of 11640-11700 to regain any strength. On the flipside, 11460-11430 is the immediate support range to watch out for. From a near term perspective, the index is locked in a range which could be termed as a time-wise correction and until we see a breakout in either direction, traders should focus on a stock specific approach.
The Nifty IT index clearly outperformed the broader markets today and the stocks within this space could continue outperform in near term. While the banking sector witnessed some pressure in today's session, the Nifty PSU Bank index indicates probability of underperformance in near term. In this consolidation phase, traders could find opportunities on both the sides of the trade and hence one should be stock specific with a proper risk management strategy as well."