Lethargic moves despite global party; still Nifty may head towards 11000: Angel Broking
“Today’s opening and the price action thereafter in the benchmark was quite disappointing. This is because there was strong development happened on the global front prior to our market opening. The Dow future was trading with whopping gains of nearly 500 points and all other Asian bourses were clearly on a roll. Despite all this, we opened slightly higher and then shaved off all gains during the first half. The latter half was full of boredom and eventually, Nifty ended on a flat note tad below the 10900mark.
In the morning, most of the traders (especially the bulls) might have dreamt of a huge rally in our markets looking at the stellar moves across the globe. But, today’s price action poured water on all those expectations. Technically speaking, there is no sign of weakness yet and hence, one needs to stay positive unless we don’t see index breaking major support of 10700 – 10650. Before this, Friday’s gap area of 10782 – 10757 is likely to act as an immediate support zone. On the higher side, we maintain our stance that the Nifty is heading towards 10940 – 11000 levels.
Heavyweight counters looked a bit tired today and hence, it led to some profit booking in the recent drivers like HDFC twins, Reliance and L & T. However, the broader end of the spectrum had a good positive traction throughout the day and thus, traders should now look to find trading opportunities in the Midcap universe which may provide better trading opportunities as compared to the larger names.”