Real action seems outside the index
“Despite mixed cues from the Asian peers, our markets opened slightly higher carrying yesterday’s optimistic mood. Subsequently, index consolidated for the remaining part of the day to eventually conclude with negligible loss. Clearly, the real action was outside the index as some of the mid and small cap counters soared 10 – 20 % during the session.
Today’s price action was really a disappointment especially after posting a strong close yesterday at new record highs above the 10150 mark. But, this is how market moves; it never respects the most obvious expectations by masses. Having said that, we would stick to our recent stock centric approach and it make sense as we saw good buying interest in the broader market. As far as next trading range is concerned, we expect the index to gradually move towards 10200 – 10250, which is not far away from current levels. On the other hand, the base has shifted higher and hence, 10043 – 10015 would now be seen as a key support zone.”