Market at a corridor of uncertainty: Angel Broking

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

"Our benchmark had a good bump up at the opening citing to positive cues from the global peers. During the initial hours, index extended its lead a bit and then remained in a tight range for the remaining part of the day. However, there was some unusual action seen in the broader market. Some of the heavyweight constituents were trading at highest point of the day with decent gains and at the same time, the midcap index was making new low (for the day) with a cut of over a percent. Hence, despite index closing well inside the green, it was a painful day for most of the traders.

Due to last two days' smart rally, 10600 became the strong support for the current series and a possibility of extending this move increased. In line with this, we saw index heading towards the mentioned resistance zone of 10740 - 10775. And as we advocated about lightening up positions around it, we saw some profit booking at higher levels. Going ahead, 10775 remain to be a sturdy wall and if index has to extend this rally further, it needs to surpass this corridor of uncertainty with an authority. On the other side, a sustainable move below 10695 would lead to some profit booking in coming days. With a positional view, 10600 - 10489 has become a key support area for the market.

The banking index saw good traction in early trades, however due to lack of follow up buying; we saw exhausted moves in the banking index. Hence, one needs to keep a close eye on how this heavyweight pocket behaves hereafter. Also, the midcap basket was clearly a disappointment today and unless we don't see participation from it, we expect sluggish moves in the market on the expiry day of the November series."

Source : Equity Bulls

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