Divergence in two major indices creates some skepticism: Angel Broking

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

"Today, Moody's upgrade brought back some ecstasy in our market as we saw a gap up opening by a fair margin beyond 10300. This was followed by a long consolidation; but, we saw some profit booking during the penultimate hour which eventually dragged the index below 10300 on a closing basis.

Honestly speaking, today's move was slightly on unexpected lines for us as we expected yesterday's relief rally to extend towards 10260. The major charioteer this time was once again the entire banking pack. The Bank Nifty clocked a record high at the opening, indicating massive divergence within two major indices. Now, as far as Nifty is concerned, 10344 - 10368 seems to be an immediate hurdle; whereas any move below 10250 would resume downward move to test the 10200 mark. At present, traders are advised to focus on individual stocks by adopting a proper exit strategy."

Source : Equity Bulls

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