Index eyeing record highs now, Pharma seems to be the flavor now: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Yesterday's tail end recovery was followed by a decent bump up at the opening. Despite SGX Nifty indicating a sluggish start, we witnessed positivity at the opening which was mainly on the back of favourable cues on the domestic front. During the first half, this lead extended to traverse the 12000 mark. However, during the latter half, index came off a bit due to some profit booking at higher levels and eventually closed at a kissing distance from 12000.
The way we closed yesterday, things were pretty clear and as expected we managed to surpass the recent hurdle of 12000 in the initial hour. Market opted for some profit booking at higher levels but still we remain upbeat and expect the index to first test 12050 and then move towards the record highs. The 'buy on declines' strategy should be continued and the banking index is likely to lead this move. On the lower side, the support is continuously getting shifted higher; first from 11700 to 11800 and now from 11800 to 11960 - 11900.
As far as individual sectors are concerned, as highlighted previously, individual themes are working well in the market and today it was once again the recent movers 'PSU' that kept buzzing throughout the day. However, the real show stealer was clearly the 'Pharma' space. Since last few days we have been quite vocal about 'Pharma' being in last phase of correction and soon we would expect some revival. The way it's moving since last few days, it's clearly a sign of unfolding a decent rally in the near term. Do watch out for this name as we expect moves to extend in selective marquee names from this universe."