V-shaped recovery in three sessions, Nifty gains 500 points from recent low: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"After ending on a high note in yesterday's session, the Nifty continued the momentum and opened on a positive note today. Post some momentum in initial couple of hours, the index traded an a narrow range for rest of the day and ended near the opening levels, marking gains of half a percent over previous sessions close.
Although the index traded in a narrow range today, the broader markets witnessed good momentum as the market breadth was clearly in favor of the advances. In last three sessions, the index has gained about 500 points from the low registered on Friday. This V- shaped recovery has also been supported with participation from most of the sectors which is a positive sign. The immediate resistance for the index placed around 11150-11200 which is the 38.2 percent retracement of the impulsive decline seen from 5th July and the '200 SMA' on the daily chart. However, we are of the opinion that the short term corrective phase is behind us and hence, instead of selling near the resistance, traders should now approach a 'Buy on dip' strategy and find buying opportunities on any declines. As far as support is concerned, 11050 and 10930 are seen as the immediate support levels. A stock specific approach is providing better trading opportunities and hence, traders are advised to focus on the same."