PNB fiasco ruins trading environment, index continues to remain choppy: Angel Broking

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

"After a sharp sell off during the latter part of Wednesday, most of the traders in our market were anticipating a gap down opening. But, as market always surprises us, we witnessed a gap up opening which was mainly a rub off effect of the strong overnight rally seen in the US markets. The index extended this optimism and went on to surpass the 10600 mark. However, similar to previous session, once again the sellers started dominating the proceedings and eventually some portion of gains got wiped off in the second half.

The volatility seems to have increased drastically or rather one should term it as 'Choppiness'. At the end, the market is not going anywhere as we can see false intraday breakouts on either side. In our sense, at present, the market is undergoing some kind of time-wise correction and hence, one needs to give more weightage to breakout happening on a closing basis. Now, if any directional movement has to come then Nifty should give a sustainable breakout from the range of 10618 - 10456. Until then, we are likely to see such choppiness with slightly higher volatility. In such cases, traders should keep a close watch on individual stocks that are likely to provide better opportunities in both directions.

The PNB fiasco continues to ruin the trading environment and this certainly is having a rub off effect on its peer counters. Traders should remain light on this space and should rather avoid any kind of bottom fishing for a while."

Source : Equity Bulls

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