Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It seems that our markets are not even interested looking at what global markets are doing. While US bourses hitting record highs every day, our market still looks dejected and yesterday too, we had a massive cut in the first half after breaching the 11300 mark. Fortunately, the fall got arrested at a kissing distance from 11200 and thereafter, we kept oscillating with volatile swings throughout the remaining part of the day. Eventually, the Nifty concluded with over half a percent cut.
In last three-four days the selloff intensified in our markets and this time, market is not willing to spare the stable names as well. Since last couple of days, 11300 has been acting as a sheet anchor and hence, yesterday we saw complete nosedive after breaching this key support in the initial hour. Fortunately, Nifty and Bank Nifty saw some mild recovery in the latter half; but the midcap index continued to grind lower and is now trading at nine-month low. As far as levels for our benchmark is concerned, 11200 - 11108 would be seen as immediate levels in the downward direction and on the flipside, 11300 followed by 11360 would now be seen as immediate hurdles.
We are now stepping into a July series expiry session and hence, we may see some volatile swings on both sides. At present, traders are advised to stay light and should avoid taking undue risks."