By Mehul Kothari
Senior Technical Analyst, IndiaNivesh Securities Ltd.
Yet another day of consolidation was observed on the D–Street in the absence of any fresh triggers for upside. The domestic markets remained range bound for second consecutive session post the rally of Tuesday’s session. Index Nifty, initially nosedives towards 10850 mark but recovered sharply during the second half to close well above 10900 mark with marginal gains. Meanwhile, Nifty Bank index displayed wild swings by recovering almost 300 points form day’s low to close in positive terrain.
The market breadth turned negative amid the high volatility and profit booking in individual stocks. On the sectoral front, we witnessed a mix bag of picture wherein NIFTY MEDIA (-2.08%) stocks remained the biggest laggards whereas NIFTY REALTY (+1.19%) counters gained the most. From the F&O space, DCBBANK (+3.87%), JETAIRWAYS (+3.50%) and MINDTREE (+2.84%) were the top performers.
Despite some initial hiccups during the session, Nifty has again managed to close above 10880. In fact it has closed above 10900 which indicate that the triangle breakout is still intact and Nifty has a potential to sneak above 11000 mark. TA the same time, we also maintain our stance that 11200 still remains a very strong hurdle for the bulls. Thus we would advise traders to start booking profits once index arrives near that zone. As of now, the support of 10620 has now been shifted to 10690.
Only a move below the same might dwell the ongoing momentum. For the coming sessions 10930 and 1010840 would remain an intermediate resistance & support respectively for the markets. Currently we advise traders to trade with positive bias but avoid any over leveraged positions.
