Mindtree, Ajanta Pharma, Emami, UBL to be in focus today

Bull market or bear market?

Bull case faces a stiff challenge, but 10 DMA seen at 10475 might attract buyers initially. In such cases expect 10620/10700/10770. Dips below 10475 could trigger falls to 10270.

Stocks likely to be in limelight today?

Mindtree, Ajanta Pharma, Emami, UBL are stocks poised for technical up moves.

Sectors likely to impact market today?

IT and pharma along with consumer goods are the sectors to be focused in the near term. Both IT and pharma indices have bounced off their respective 200 DMAs and extension of positivity could be expected in these sectors. Additionally, fall in rupee would also help these sectors.

Your mid-term view?

Volatility should dominate the near-term trend, with considerable OI activity at 10500 & 10700. Nifty's upside momentum looks to have stalled, and favoured view expects Nifty to stage a dip towards 10400-300 in an attempt to attract bargain buyers. We will watch the dynamics at 10270 or look for a close above 10690 to reignite the 11200 views.

What drove markets on Monday?

The rise in crude prices, following Saudi's announcement, has put rupee once again under pressure inducing sharp dips in the index. Investors also seemed cautious ahead of the key economic data (IIP and CPI) release later in the day. Defensive buying was seen in IT, but all other sectoral indices exhibited weakness. The sharp rise in VIX (by 8.95%) also disrupted the initial attempts to push higher.

Anand James, chief market strategist, Geojit Financial Services