Late surge in few heavyweights helps Nifty defend 13000 convincingly: Angel Broking

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

"Nifty started the day on a flat note and consolidated within a narrow range till noon. However, it then witnessed sharp sell-off from 13100 and sneaked below the 13000 mark. But a late surge in the few index heavyweights led to a recovery in the end and Nifty managed to recover all intraday losses to close above 13100.

Since last few days ,the intraday dips in the Nifty are getting bought and the same was witnessed in today's session as well. The correction post noon got bought into around the 13000 mark and Nifty recovered the intraday losses. However, the banking index showed some divergence today and underperformed the benchmark to post a loss of over one percent. On the other hand, the midcaps continued their dream run and continued the outperformance. The rally now seems to be getting concentrated towards the midcap and the small cap space while the large cap names have taken a back seat and are consolidating. This could be seen as a divergence and hence, market is likely to show some reality checks in between. In such a scenario, traders should look to trade with the momentum in such stocks which are witnessing good price volume activity. However, considering the mentioned divergence, one should also book timely profits and avoid getting into aggressive or over leveraged positions.

As far as levels are concerned, 13150 is the immediate resistance to watch and after surpassing it, we may see an extension of the move towards 13225-13300 levels. On the flipside, 13000-12960 zone would be seen as immediate support which if breached, could lead to a healthy profit booking. The Nifty Midcap100 index surpassed the 20000 level after more than two years and it has been a remarkable move from the recent lows. While the momentum continues to remain strong, 19775 is the support that traders should keep a tab on and accordingly manage their trading positions."

Source : Equity Bulls

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