A morning walk down Dalal Street | Critical support at 10,100; investors should be selective in stock picking

After a big rally of over 700 points on the Sensex, it looked like a day of consolidation for D-Street. The S&P BSE Sensex slipped below 34K while Nifty50 also failed to hold on to 10,200 levels.

The S&P BSE Sensex closed 176 points down at 33,891 while the Nifty50 dropped 52 points to close at 10,198. 

Sectorally, IT, capital goods, realty and consumer durable stocks rallied while energy, oil & gas, metals, and banking stocks saw some bit of selling pressure.

The markets seem to be surrounded by a host of negative issues such as global trade tensions, rising oil prices and a falling rupee to name a few. 

Earnings from India Inc. is not rosy but stable. The profitability growth at 7.9 percent year on year was a tad lower than Q1FY19 growth of 8.4 percent but was better than 3.4 percent that was reported in Q2 FY18, said a Moneycontrol Research report.

Experts advise investors to be selective in their stock picking. UBS in a report on Monday puts a Nifty target of 10,500 by December 2018. It remains overweight on IT as well as private banks. But, at the same time stays underweight on wholesale funded banks as well as small and mid-caps. 

Technically, supports are placed at 10,138 and 10080 while resistance is placed at 10,285-10,400.