Market recoups losses; courtesy to banking and midcap baskets: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It was a splendid day for our markets in the midst of a global uncertainty. Traders started fearing about global slowdown and hence, global markets had a terrible day on Monday. We also had a rub off effect of it; but it didn't last too long. Despite SGX Nifty indicating a flat start today, we kick started higher and post the initial consolidation, there was complete gush seen in the latter half of the day to eventually conclude the spectacular day with gains over a percent.
Today's session was a picture-perfect day for our markets and if we refer to our previous article, it was no surprise for us. We had advised not to get intimidated by yesterday's correction; in fact, we mentioned it as a good buying opportunity. Now, if we look at the mesmerizing intraday rally, the strategy seems to have played out well. With today's bump up, the Nifty has trimmed almost seven tenths of its last two day's losses; whereas if we look at the banking index, it has almost completely managed to recoup its losses. This is a typical characteristic of a strong up move and hence, we repeatedly advised against going short on the market. As far as levels are concerned, immediate resistance would now be seen at 11521 11573; whereas on the lower side, 11434 followed by 11400 are likely to provide decent supports.
Yesterday too banking index led the last hour recovery and today it was clearly on a roll. It's a matter of time now; we would see banking index reclaiming the 30000 mark and then our benchmark following the same to clock record highs. We saw midcap basket bucking the trend yesterday and honestly, it was the only comforting factor for us. With today's move, it has confirmed its dominance and hence, one should keep focusing on some of the high beta names from this universe."