Weak global cues jolts our markets, but midcaps outperform : Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):

"Post the sharp surge in yesterday's last hour of trade, it seemed that the mighty bulls have regained strength to take the indices higher. However, the weak sentiment in the global markets had a rub off effect on our markets and hence, we witnessed a gap down opening of more than 200 points in Nifty. The index managed to find support around the 15000 mark and showed some pullback, but the leadership from the large cap space was missing and hence, the Nifty ended the day with a cut of about a percent below 15100.

It wasn't a trended day as far as index movement is concerned as the Nifty showed some volatility within a broad range post the gap down opening. Nifty defended its support of 15000 but the pullback move from thereon was still not strong enough to take the indices much higher. However, the stock specific momentum from the midcap basket was robust and hence, we had a positive market breadth and the Nifty midcap index outperformed to clock new record highs. In the last two weeks, we have seen moves on both sides in Nifty and there's no clear direction seen. On the lower time frame chart of Nifty, this seems to be a 'Broadening Triangle' in formation which generally occurs with a lot of volatility and traders usually tend to get trapped if entered on breakouts on either side.

Thus, we would advise traders to take a backseat for a while for clear direction to emerge in the indices. The immediate support for the coming session are placed around 14960 and 14800 whereas resistances are seen around 15200 and 15300. Intraday traders should look for stock specific trading opportunities as the midcap space is buzzing and keeping a stock specific approach seems to be the apt strategy for short term/intraday trading in such markets."

Source : Equity Bulls

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