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Below the Daily Market Analysis by Mr. Ajit Mishra, SVP - Technical Research, Religare Broking Ltd

Markets oscillated sharply on both sides and finally ended the session with a gain of nearly a percent.  After the flat start, Nifty drifted lower in continuation to Wednesday’s decline and tested the support zone of short term moving average i.e. 20 DEMA. However, the tone changed completely in the latter half, with a sharp recovery in the heavyweights across sectors. Consequently, Nifty not only pared losses but also made a new record high. IT, auto and metal were among the top gainers on the sectoral front while banking ended almost unchanged. The broader indices also witnessed respite and gained in the range of 0.7%-1.06%.

The move shows that bulls are in control thus participants should continue with a “buy on dips” approach until Nifty decisively breaks the 21,800 level. At the same time, we are seeing a mixed trend within the sectors so participants should maintain extra caution in stock selection and prefer counters with higher relative strength.

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