Some tentativeness around 11300, financials drag again: Angel Broking

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

"For the third straight session, our markets opened with an upside gap owing to favorable cues from the global bourses. In the initial trade, Nifty reclaimed the 11300 mark which was broken severely last week. However, unlike the last couple of sessions, the bulls looked a bit tentative at higher levels, which resulted in a healthy intraday correction around the mid session. This was followed by almost complete recovery in the penultimate hour, which again got sold into to conclude the day on a flat note.

After two days of spectacular recovery, the market took a breather today; however, the volatility was slightly on the higher side. Technically there is a reason for this tentativeness around the 11300 mark.The previous breakdown point of the 'Triangle' is placed around it and importantly, the 61.8% retracement of the recent fall from 11618.10 to 10790.20 precisely coincides around the same mark. Hence, we continue to consider 11250-11350 as a sturdy wall for a time being. For the coming session, we are likely to see further weakness once Nifty sustains below 11180 to retest 11100 - 11000 levels. Hence, it's better to stay light and avoid getting carried away by such intermediate recoveries.

On the sectoral front, the IT showed some strength today along with Metal counters and mighty RELIANCE. They helped Nifty defend its key support today; whereas the dragger banking space provided selling pressure at higher levels. Although, individual themes are playing out well but we still advocate refraining from creating aggressive bets (overnight)."

Source : Equity Bulls

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