Marquee 'IT' names finally saw some profit taking: Angel Broking

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

"Despite Asian bourses trading with some sluggishness in the morning; our markets kick started the trading week on a positive note. The optimism extended as the day progressed and in the process, the Nifty started trading well above the 10600 mark. However, last half an hour of the day, did show some ominous signs as we saw a sharp profit taking to pull the index below 10600 on a closing basis.

Until last half an hour, things were looking extremely bright and index did not show any sign of weakness. But, as always market surprises us, the index saw some corrective moves precisely after nearing the stiff hurdle of 10640. This is what we have been mentioning since last few days and the level has clearly proved its significance. Going ahead, traders needs to keep a close eye whether Nifty is able to surpass this level or not? In case of another unsuccessful attempt, we could see selling intensified in the market. On the downside, 10495 remain to be a key support. A sustainable move below this level would apply immediate brakes on the recent relief rally. Till then the index may continue gyrating within a range of 10495 - 10640.

Since last few days, clearly the 'IT' conglomerates have been on a roll and in fact, the early morning lead was mainly propelled by this heavyweight space. However, last hour profit taking in some of the marquee names dragged the index lower below the 10600 mark. Apart from this, another pocket that has caught traders' attention is 'Pharma'. The close in some of its constituents indicates continuation of today's move in coming days."

Source : Equity Bulls

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