IT and Pharma stocks likely to be limelight today

Bull market or bear market?

Nifty continues to be in a bearish formation on the intraday time frame and may see resistance at the levels of 10575-10590. Short-term MA which saw a rebound is now flattening out and distribution may be seen at higher levels. We expect it to be bearish play for lower levels of 10480-10470.

Stocks likely to be in limelight today?

IT stocks like Hexaware, Tata Elxsi, and NIIT. Pharma Stocks Biocon, Glenmark and Sun Pharma have seen decent breakouts for a short-term directional play.

Sectors likely to impact market today?

Given the recent jump in dollar-rupee, IT Sector will be on radar or December series and coming days. Pharma sector as a defensive play. Small caps and Midcaps have also seen a reversal from its previous supports.

Your mid-term view?

I will be a very volatile play since the range is much bigger given the derivatives data and with events and absorption of the same in price, it may not be easy for a Santa rally. Nifty may remain in a broader range of 10900 to 10400. A break of this range can be utilized for a directional play else we are looking at volatility play.

What drove markets on Tuesday?

Basically buying at lower levels, Drop-in IV's and writers getting aggressive at strikes of 10300-10400. That worked out for bulls. The range is still intact and there wasn't any significant change in band given today's numbers as well. Volume was much better as compared to last two weeks and was above average for the last couple of days. That worked out well for bulls but it is important to see if the strength remains on their side in the coming days.

Mustafa Nadeem, CEO, Epic Research