MC Special Podcast: Geopolitical concerns a spoiler but 12,100 crucial for bulls

Indian markets witnessed a kneejerk reaction to the rise in geopolitical concerns that could lead to some more consolidation but a break below 12100 levels could lead to further correction, Sacchitanand Uttekar, DVP – Technical (Equity) at Tradebulls Securities Ltd said in a special podcast with Moneycontrol.

If we look at the way we started the week it suggested that the market was moving in a range and 12,300 level was acting as a tough resistance.

“The market was expecting fresh highs on Friday but it could take a while now, but consolidation is healthy and the bias is on the upside,” explains Uttekar. We expect the Nifty50 to eventually scale higher over 12,400, and the base which is building around 12,100 should hold for the coming week as well, he said.

However, for the coming week, 12300 will act as a breakout level, and a break about could take the index towards 12440-12460. But, on the downside 12,100 will act as crucial support for the index. The built-up of positions has been strong near 12100 strikes and also around 12200 strikes.

The next big triggers for the D-Street is the December quarter results season which will start from the next week, and Union Budget 2020. “Hence, markets could well absorb all the negative news and we may see a rally towards 12400 levels,” said Uttekar.