Daily Market Wrap Up - May 19, 2020 - Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)
"We had a stellar overnight rally in US and European markets and most of the bourses soared as much as 3-4% during the day. This resulted into a gap up opening in our markets after yesterday's massive correction. However, once again we failed to sustain at higher levels, which indicates sheer underperformance from our markets. At the end of close, Nifty ended with marginal gains over half a percent, whereas the weakest link BANKNIFTY concluded in the red.
In our previous article, we had mentioned that we were not convinced with yesterday's decline and hence, today's gap up opening was very much on expected lines. However, thereafter, we saw index struggling to stay at higher levels and eventually pared down a major portion of gains, which is clearly disappointing. It seems that the previous key support zone of 9000-9050 is now acting as a sturdy wall and precisely after entering this area, our markets took a u-turn. Going forward, it would be important to see whether Nifty manages to hold 8800-8750 or not. On the flipside, 8950 - 9050 would be the levels to watch out for. If we have to see any recovery in our markets, the next couple of days would be quite crucial and hence, we need to keep a close eye on above mentioned levels.
Clearly, there is some serious pain in our Financial space, which is not letting Bank Nifty participate in any rally. Hence, as we had alluded, if our market has to see any rebound, the banking space needs to stabilise first and then give some sustained relief move."