Nifty started the week by trading in a 1% range intra day. The previous week it stayed in a range of less than 2%. Across market capitalizations the maximum change from Friday was less than half a percent.
Source: stockcharts.com
Any decisive move on either side will face resistance at 24700 or support at 23600. The Primary Commodity Sector along with the Secondary Manufacturing/Consumption Sector and Tertiary Services Sector remained indecisive for yet another day.
Till this rangebound phase continues it will be difficult to trade breakouts or breakdowns intra day and failures on both sides are highly likely.
Source: stockcharts.com
The most significant recovery was seen in the Metal and Realty Sectors. However we expect any rise in these Sectors to get sold into at the resistance levels, near the moving averages, as they have shown a series of lower tops and lower bottoms.
The FMCG Sector and Pharma Sector which trended really well in July did not correct early August but have remained sideways and halted post the up move respectively. Other heavy weight Sectors like Energy, Infrastructure and IT continue to trade in a tight range.