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

Markets traded volatile for yet another session but ended with decent gains. The tone was negative in the first half, tracking weak global cues, however resilience in banking combined with sharp recovery in the IT and FMCG majors completely changed the mood as the day progressed. Eventually, Nifty settled around the day’s high at 22,474.05 levels.  Among the sectoral indices, banking, financials and pharma put up a good show while realty and metal witnessed profit taking. Meanwhile, underperformance continued on the broader front wherein smallcap shed nearly 2%.

The rotational buying across sectors is helping the index to maintain a positive tone and we are eyeing 22,800 in Nifty. However, the distribution on the broader front can’t be ignored.  We thus reiterate our preference for index majors and large midcaps for long trades and suggest reducing exposure to the smallcap counters.  

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