10850 becomes a sacrosanct support: Angel Broking
“Since the policy day, index remained under pressure and today morning, despite global markets consolidating with a mild positive bias, we started on a weak note. In fact, this negativity increased in the initial hour, dragging Nifty well below the 10900 mark. Fortunately, due to emergence of some buying at lower levels, Nifty managed to trim decent portion of losses to eventually close with half a percent cut.
Quite clearly, our markets shrugged off positivity from the global bourses in the latter half; but if we look at it from other angle, we can interpret as if today’s correction was rather halted due to this global development. Price-wise, Nifty has successfully managed to defend the mentioned key support zone of 10850 – 10900. Going ahead, a move beyond today’s high of 10931 would bring back some positivity in the market. In this scenario, we may see Nifty reclaiming11000 and beyond levels. On the flipside, 10850 remain to be a sacrosanct support.
As far as broader market is concerned, there were few massive drops seen in individual stocks; but unlike recent days, few handful of stocks did manage to climb smartly to confirm their near term base. It certainly bodes well and hence, one needs to be very fussy now while making a stock selection.”