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Below is quote on Market Wrap Up - Nifty consolidates in a range; sector rotation visible by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel One Ltd

The overnight global cues were positive and the SGX Nifty was trading above 18000 hinting at a positive start. However, the Nifty failed to capitalize on the cues and started the day marginally positive around 17930. The index did not witness any further upmove from open, but it consolidated within a range of 100 points and ended on a flat note.

Inspite of some positive cues from the SGX Nifty, we did not see any significant momentum in the Nifty and it was rather a dull session for index traders. However, the stock specific activity was buzzing which provided better trading opportunities. In last couple of sessions, Nifty has seen some consolidation and is trading around the ‘20 EMA’ on the hourly charts which is the immediate support for coming session. The level around 17800 would be the intraday support below which, we can see some profit booking towards 17700 mark. On the flipside, 17950 would be the level to watch out on the higher side which is where we are witnessing some resistance since last two days. Above 17950, the index would resume the momentum to march towards the 18000 mark and beyond that 18080 would be the immediate level to watch out for. Keeping the above mentioned levels in mind, one should trade with proper risk management and look for stock specific opportunities for better trade set ups.

The Auto index gave a breakout from its resistance today and the stocks from this sector witnessed good buying interest. The Realty sector too continues with its recent momentum and showed outperformance. On the other hand, the recent outperformer IT space witnessed decent profit booking in today’s session. Thus, sector rotation is clearly visible and hence, traders should be selective and trade with a thematic approach.

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