Index consolidated but PSBs and midcap Pharma had blown up moves: Angel Broking
“The geopolitical concerns on the domestic front eased off a bit due to some positive developments and this clearly had a rub off effect at the opening in our market. We started the day with decent upside gap, which was followed by a long consolidation in our benchmark index. In fact, index remained in a slender range throughout the day by maintaining its positive posture. Eventually, the Nifty managed to close with over six tenths of percent.
As far as levels are concerned, index has not gone anywhere and hence, we are still trapped in a trading range of 200 points i.e. 10930 – 10730. Only a sustainable breakout in either direction would lead to some trended move. Till then one should avoid trading aggressively. However, having said that, we have been quite vocal on the fact that the broader market is showing some signs of revival and this is what we have experienced in the week gone by. In fact, today we saw some blown up moves in bunch of individual stocks. Hence, it’s better to focus on such potential candidates rather than just scratching our heads, tracking a tick by tick movement in index.
Today, the other heavyweight pocket ‘banking’ did extremely well as we saw the entire PSU banking space had a stellar rally. Also, few midcap private banking names too did not stay back and they contributed considerably in today’s move. But the real outshining pocket was ‘Pharmaceutical’ especially the midsize beaten down counters, some of which had an eye-popping move towards the fag end of the day.”