Market remains volatile ahead of RBI Policy, midcaps to outperform: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We had a v-shaped recovery yesterday to recoup Monday's entire losses. Since the broader market was on a recovery mode; courtesy to decent rebound in banking stocks, the stage was all set for a positive start today. Very much in-line with this, our markets opened higher and then continued it's move northwards to surpass the 11200 mark in initial hours. However, all of a sudden, the Nifty took a complete nosedive not only to wipe off losses but also to sneak inside the negative terrain. After this, the market kept gyrating in a band of 90 points with some volatility to conclude on a flat note at 11100.
Today's wild swings had nothing to do with global peers; because they have been trading firmly in the green since morning. In fact, traders were completely clueless about such wild swings. May be, this indecision has something to do with the RBI monetary policy slated tomorrow. Now as far as levels are concerned, 11020 followed by 10900 remains to be an immediate support zone and on the upside, 11160 - 11235 are the levels to watch out for. As of now, there is no hint of the market experiencing a big bang move on the policy day but in case if it happens, then a directional move is possible only outside the range of 11235 - 10900.
Although markets were a bit lethargic in the latter half, the action was not at all missing in individual stocks. In fact, we would rather rate it as one of the best days for stock specific moves in the last few days. The Metal and Auto counters had spectacular moves along with broader market participation. In fact, taking a glance at the Nifty Midcap 50 index, further up move of nearly 2% would lead to a strong breakout in this space. Hence, even if the benchmark index consolidates, traders should not miss stupendous moves in individual stocks especially from Midcap universe."