Stock specific moves amidst a consolidation phase: Angel Broking

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

"Post the positive momentum in the global markets, the SGX Nifty hinted at probability of a gap up opening and our markets started trading for the week on a positive note around 9350. The upmove continued in the first half n hour and Nifty almost tested the resistance of 9450. However, the banking space corrected and under performed throughout the day which dragged the Nifty index too and it ended with marginal gains of less than half a percent.

During last week, the indices opened with a significant gap down and then traded within a range and formed support around 9100 and resistance around 9450. Today, we started trading for this week with a gap up but Nifty was unable to surpass the resistance of 9450 and it gave up much of the gains by the close. Clearly, there was a sector specific momentum during the day in which the Auto index outperformed the most with gains of over 4 percent, whereas Bank Nifty under performed and ended with a cut of over 2 percent. Usually, such sector / stock specific momentum is seen when the indices consolidate in a broader range and till Nifty trades within the range of 9100-9450, such moves are likely to continue. Hence a directional move could be seen only post a breakout beyond the above mentioned range and till then traders are advised to trade with a stock specific approach."

Source : Equity Bulls

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