Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"After a spectacular tail end surge yesterday, Markets opened flat today morning owing to muted global cues. In the initial trades, Nifty once again inched towards 12400 but attempt turned unsuccessful for the second time in last three days. This resulted into a sharp decline to retest the lower end of the intraday range. Fortunately, our markets managed to defend key levels as we saw a steady recovery throughout the second half to conclude the weekly expiry with nominal gains.
Clearly, benchmark index has lost its sheen and hence, we are seeing such haywire moves in last 3 - 4 days. The major culprit of this is none other than banking conglomerates that are underperforming considerably. Fortunately, some or the other heavyweight Nifty constituents are able to lift the index higher from intraday declines. We continue to expect such choppy moves in index and hence, it's advisable not to trade aggressively in index specific trades. And the apt strategy to trade in such behaviour would be to trade the range i.e. buy as close as possible to supports and vice versa. Ideally it's absolutely okay to avoid index trades and should focus on individual stocks. As far as levels are concerned, sooner or later, we expect the index to gradually head towards next milestones of 12400 - 12500 in coming days and on the downside, 12296 followed by 12260 remains to be a sacrosanct support zone.
Further, it would be unfair not to draw your attention to the midcap index which continues its stellar run in last 6 - 7 trading sessions. Undoubtedly, it has been the knight in shining armour for market participants since last few days. Although, it's a bit overbought now, the northward trajectory is likely to continue and hence, one should keep focusing on such potential candidates from this universe."