Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Last Friday market took a giant leap after FM's announcement on slashing corporate taxes. All of a sudden, the tide turned upwards and before anyone could realise, the Nifty was well above 11200. Since it was predominantly a short squeezing move, markets were not done with such sharp one day spurt. Expectedly, we had a good bump up on Monday to kick start the week on a strong note. Participants were so ecstatic; the Nifty went on to almost kiss the 11700 mark in the initial euphoric move. However, this seemed to be an overreaction and hence, throughout the remaining part of the week, market consolidated in a slender range to eventually conclude tad above 11500.
Practically speaking, Nifty soared 1000 points in merely two days and one has to understand, it is very seldom to see such colossal move in a quick succession. So, to bring the market sentiments back to the equilibrium, we either had to see natural profit booking or had to spend some time in a range. As of now, market seemed to have opted for the second choice and hence, we consolidated after Monday's bump up. Now, the low hanging fruit or the easy money is already gone at least for traders. We are likely to witness such choppy moves now and hence, one needs to be very selective while picking up a stock. Yes, the directional bias remains positive as long as we are above the 11200 mark. Meanwhile, any dip should be construed as a buying opportunity. The immediate range can now be seen at 11400 - 11700 and it's advisable to stay light in this band. However having said that, it's a matter of time, we expect index coming out of it very soon and more importantly in the upward direction.
In this scenario, the next levels to watch out for would be around 11900 - 12000. Traders are advised to keep a tab of all the above mentioned levels and should focus on individual stocks that are likely to provide better trading opportunities. The actual momentum will now trigger only above 11650 - 11700, which will attract lot of participants who are still waiting on the side lines."