Pharma, IT sectors likely to be in focus

Bull market or bear market?

Nifty is trading in a band of 11350-11500 over the last eight trading sessions. A breakdown below 11350 level will see weakness in index pivotal and sharp profit booking in midcaps and small caps.

Stocks likely to be in limelight?

Torrent Pharma, Lupin and Sonata Software will remain in limelight. Metals stocks like Vedanta Ltd, Hind Zinc and Hindalco to see some action after a sharp bounce back in prices at LME.

Sectors likely to impact market?

Pharma and IT sectors could be in focus following the weakness in the Indian rupee against the dollar. Metals sector, after a sharp bounce back in prices of lead, aluminium and zinc at LME, should see some action on the domestic bourses.

Your mid-term view?

On the higher side, 11500 will be a strong resistance as index heavyweights are showing signs of profit-booking. However, there are multiple supports on the downside as the short-term average is placed at 11240 level and 11170 continues to remain a strong support, which was the previous all-time high. We expect markets to trade in a range of 11200-11500 levels over the next few days.

What drove markets on Thursday?

Nifty opened lower on back of weaker global cues, filled the intra-day gaps and corrected sharply to close near the low point of the day in line with the global markets. Among sectors, metals, media and banks declined by 2.3%, 1.3% and 0.7%, respectively, while IT and FMCG ended flat to positive.

Vikas Jain, senior technical analyst, Reliance Securities