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

Markets reversed Monday’s decline and gained nearly a percent, in continuation to the prevailing consolidation range.  After the flat start, the Nifty gradually inched higher as the day progressed and finally settled closer to the day’s high.  Most sectors traded in sync with the move wherein IT, metal and auto were among the top performers while banking and FMCG remained subdued.  The buoyancy returned to the broader indices after a breather and both midcap and smallcap gained in the range of 0.8%-1.2%.

All key sectors, barring banking, are attracting buying on a rotational basis and that is helping the index to maintain a positive tone amid consolidation. The recent price action indicates the prevailing tone to continue and traders should maintain their focus on stock selection. We reiterate our preference for metal, IT, auto and pharma for long trades and suggest staying selective in the others. 

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