Profit booking drags index lower in later half: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):

"After a mid week holiday, our markets started today with a gap up opening as hinted by the SGX Nifty. Nifty registered a high around 9261 and witnessed profit booking in the later half of the session. The index gave up all the gains and ended the day with a loss of about three -fourths of a percent.

During the mid-week holiday, our government announced extension of the ongoing lock down period. However, market participants had anticipated such move in advance and hence, it was already factored in due to which we did not see any impact at opening. However, as mentioned in our yesterday's report, the immediate resistance of the index was seen around 9320 which is the 38.2 percent retracement of the recent correction. Nifty almost rallied towards that resistance (made high of 9261) and then witnessed profit booking during later part of the day. If we look at the sectorial participation in the recent upmove, then it is seen that the Pharma and the FMCG space have outperformed and have taken the leadership this time. Whereas the banking space has been an under performer in this upmove as there is no 'Higher Top Higher Bottom' formation yet in Bank Nifty and this index has just retraced about 23.6 percent of the recent correction compared to 38 percent for Nifty. Traders are advised to watch for the outperforming counters and trade in such names along with the momentum. As far as levels are concerned, the immediate supports for Nifty are placed around 8800 followed by 8650; whereas 9260-9320 would be the immediate resistance to watch for."

Source : Equity Bulls

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