Index corrects on weak global cues, but broader markets outperform : Angel Broking
(Time Zone: UTC)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"The SGX Nifty hinted at a negative opening for our market and in line with that, we started the day gap down below 14800. However, we did not slip much from the opening levels and the index recovered much of the losses around noon. But since the participation was missing from the index heavyweights, Nifty again corrected and ended the day at 14850.
We had a gap down opening post which we saw some recovery in the first half. Although the index then consolidated in a range in the later half, it was a day of stock specific momentum wherein the broader markets continued to witness good buying interest in spite of no momentum in the index heavyweights. Although today's correction has not distorted the short term charts, the 15000 mark has certainly become a stiff hurdle which needs to be surpassed for providing a driving force to the index. The ongoing consolidation indicates that the market wants to spend some more time in the ongoing corrective phase. However, this seems to be just a time-wise correction and hence, we are witnessing good buying interest in the broader markets. The immediate supports for Nifty are placed around 14770 and 14690 whereas resistance is in the range of 14950-15000. Traders are advised to trade with a stock specific approach as there are much better trading opportunities seen there.
The midcap index continued its outperformance as it has already given a breakout from resistance. On the other hand, the PSU stocks have recently seen good buying interest and in today's session many stocks from this basket provided mesmerizing moves. Traders should continue to focus on such outperforming pockets which are delivering good short term returns."