Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It seems that our market has finally picked up some momentum after coming out of a long slumber of nearly four weeks. Throughout this week, we witnessed a series of gap up opening and today was no exception. Yesterday's sheer outperformance as compared to global peers was followed by a cheerful opening beyond the 11000 mark. This development triggered some strong buying in the initial hours. However, the latter half was not at all encouraging as we did see some decent profit booking to pare down nearly half a percent gains.
The recent optimism has been very much on expected lines and importantly, the kind of profit booking that we saw from today's high; it's an indication that we may not have a smoother ride going ahead. Also, we indicated that all stocks may not give unidirectional move. There were handful of stocks who corrected by a fair margin and hence, we reiterate that one needs to be very selective while picking up a stock. Although, today's profit booking slightly damaged the sturdy structure of daily candle, there is no conclusive sign of weakness yet. For the coming session, 11078 followed by 11100 would be seen as immediate resistances; whereas on the downside, today's gap area of 11000 – 10976 is likely to act as intraday support zone.
The ideal strategy would be to avoid aggressive bets on index as we may expect some choppy moves going ahead and hence, one needs to keep concentrating on stocks in order to get better trading opportunities."