Nifty reclaims 11300 after four months: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today too our markets opened higher as indicated by the SGX Nifty; but unlike yesterday, the lead was there to stay this time. After a positive start, markets extended gains in the initial hour; but all of a sudden, the banking index once again took a nosedive, resulted in erasing of some gains in benchmark. However, post the midsession, the entire market just took off and the smart recovery in banking space added fuel to the spectacular rally to eventually reclaim the 11300 mark for the first time in last four months.
Yesterday, we had mentioned about Nifty showing the sheer outperformance and banking being the weakest link. The similar trend was followed today too, but this time, the Bank Nifty showed some encouraging signs. As far as Nifty is concerned, we finally witnessed a breakout beyond 11200-11250, which confirmed a 'Bullish Flag' pattern on intraday time frame. The way charts are shaped up, we expect the extension towards 11350-11400 in coming trading session. If banks manage to participate in the similar way, a move beyond 11400 also cannot be ruled out.
Traders are advised to stay positive and a decline towards 11250-11200 should now be treated as a buying opportunity. Mostly we see Bank Nifty influencing the move in Nifty but today it appeared as if the strength in Nifty pulled the Bank Nifty higher."