13400 becomes a key support, FMCG came for a rescue: Angel Broking

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

"Yesterday's spectacular move was followed by a weak start today as indicated by the SGX Nifty. In the initial hour, this weakness extended a bit to test the 13400 mark. The index then consolidated in a small range for the major part of the session. However, a smart recovery in the last hour pulled the index higher and reduced the loss to merely 50 points at the end.

In our previous commentary, we had mentioned how NIfty has reached it's crucial junction with a near term view. After reaching such levels in a prolonged overbought condition, such small hiccups in between are very much evident. At one point today, it appeared as if we would sneak below 13400 but it did happen and in fact, due to tail end surge, the index managed to close once again in the comfortable zone. Although we are a bit cautious at current levels, the undertone is strongly bullish and the mighty Bulls are not willing to give up. Going ahead, 13400 will now be seen as key as well as crucial support. A decisive close below this would confirm the first sign of extended profit booking. Till then 13400 - 13550 becomes the range for the coming session.

Sectorally, FMCG space came for a rescue today as we saw an extraordinary rally in heavyweights from this space. This is a perfect characteristic of a strong Bull Run as every now and then you would find someone stepping up for a rescue. However, the midcap index saw some profit booking during the session. We reiterate that one should avoid aggressive bets and strictly follow a stock centric approach."

Source : Equity Bulls

Keywords