Stock picks of the day: Market likely to remain choppy between 11400-11700, buy on dips

Market took a giant leap after FM’s announcement on slashing corporate taxes. All of a sudden, the tide turned upwards and before anyone could realise, the Nifty was well above 11200. Since it was predominantly a short squeezing move, markets were not done with such sharp one day spurt. Expectedly, we had a good bump up on Monday to kick start the week on a strong note.

Participants were so ecstatic; the Nifty went on to almost kiss the 11700 mark in the initial euphoric move. However, this seemed to be an overreaction and hence, throughout the remaining part of the week, market consolidated in a slender range to eventually conclude tad above 11,500.

Practically speaking, Nifty soared 1000 points in merely two days and one has to understand, it is very seldom to see such colossal move in a quick
succession. So, to bring the market sentiments back to the equilibrium, we either had to see natural profit booking or had to spend some time in a range.

Market seemed to have opted for the second choice and hence, we consolidated after Monday’s bump up. Now, the low hanging fruit or the easy money is already gone at least for traders.