Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We had a weak start for the day in the wake of not so favourable news from the global peers. The selling pressure intensified in the initial hour itself to test 12300 first and then a gradual decline led to sub-12300 levels. However, as expected, we saw massive buying interest at lower levels which accelerated in the final hour of the day to trim major portion of losses. Eventually, Nifty managed to reclaim 12300 with some authority.
The banking index continues its underperformance and today was the main culprit to drag the benchmark index lower. Fortunately, the Nifty took a complete U-turn precisely from our mentioned support zone 12296 - 12260 and eventually closed tad below 12350. What we are witnessing now is a typical characteristic of Bull Run. Generally, in a falling market, every minor positivity turns into a selling opportunity at higher levels and in a strong uptrend, every mild negative factor gets absorbed immediately and traders pounces on such dips to create fresh longs in the market. Thus, despite market entering an overbought territory, we continue with our 'Buy on dips' strategy. As far as levels are concerned, the index is likely to gradually head towards next milestones of 12400 - 12500 in coming days. On the flipside, 12296 followed by 12260 now becomes a sacrosanct support zone.
Today, despite banking being the weakest link, some of the other heavyweights did extremely well and pushed the index at elevated levels in the final hour. However, once again the real show-stealer becomes the broader end of the spectrum. We have been quite vocal on the midcap index giving a strong rally since last few days. The anticipation clearly is turning into a reality as there is no stopping for recent dream run for the broader market. Mind you, this is still a beginning as we expect the midcap index to compensate further for its long two years' underperformance."