Banks sulked but IT provides the helping hand: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"Today, our markets opened on a flat to positive note despite US markets registering handsome gains last night. The benchmark index then slipped into a consolidation mode and just remained unmoved throughout the remaining part of the day. In between, small swings on both sides were witnessed, but they were not at all impactful as the overall intraday range for the day shrunk to merely 50-60 points.

Clearly, markets have become watchful after a solid knock on Monday. Practically speaking, lot of uncertainties like, India-China tension at the border, Supreme Court's verdict with respect to Interest waiver during the moratorium period and the introduction of stringent margin systems are looming over. Till the time, market do not get clarity on this front, the range bound movement is quite evident. Technically speaking, a sharp sell off followed by such uninterested trading sessions, generally does not bode well for the bulls. Hence, next couple of sessions would be crucial for markets to understand the next path of action. As far as levels are concerned, 11600-11650 remains to be a stiff hurdle; whereas on the lower side, 11500-11400-11325 would be seen as cluster of supports. Let see how things pan out and which way market decides to move.

Sectorally, banking space was the major culprit today as it started sulking right from the word go. On the other hand, IT provided the helping hand today and did not allow bears to dominate. So it was clearly a day of some tug of war between the market participants. Apart from this, midcap stocks had a great session and it provided very good opportunities today. Going ahead, one can look to follow such stock specific moves but do not hold positions for higher returns, rather look to book timely profits."

Source : Equity Bulls

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