Seems a breather due to underperformance of few heavyweights
“Yesterday’s smart rally was followed by a sluggish start as the global cues were not conducive to have a cheerful start. During the first half, we did see couple of attempts to head higher but on both these occasions, index failed to carry the momentum as few heavyweights were experiencing strong selling pressure, which eventually aggravated in the latter half to pull the index once gain below the 10200 mark.
It was clearly a day of disappointment for the momentum traders after seeing yesterday’s massive intraday rally. In terms of few heavyweights or index, this may have been a disappointment; but the real action was seen outside the index as there were so many individual pockets who continue their surge during the day. As far as index is concerned, we may call it a breather and hence, going ahead, all eyes would be on two key intraday supports i.e. 10160 and 10120. As of now, we believe that these levels would be defended and any intraday dip towards it is likely to get bought into. On the flipside, today’s high of 10285 would be seen as crucial hurdle and a sustainable move beyond this would unfold further room to test 10400 – 10440 levels in days to come.
At this juncture, traders are advised to keep a note of all above mentioned levels and should ideally continue focusing on individual stocks (especially from midcap universe) that are providing better trading opportunities.”
BY: Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)