Nifty rebounds from key support; Reliance comes for rescue: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"The U.S. indices corrected sharply yesterday which had a negative impact on the opening for our markets. Nifty opened with gap down around 11220 and it corrected gradually to sneak below the 11200 mark. However, the broader markets witnessed buying interest in the later half which led to a recovery and the Nifty recovered much of the losses to end tad below 11300, with a loss of about 40 points over yesterday's close.
The sharp correction in the U.S. markets overnight had an impact on the Asian markets today. SGX Nifty hinted at a negative opening and in line with that, Nifty started the session with a gap down. Till noon, the index traded with a negative bias mainly led by the banking space which underperformed the benchmark by a wide margin. On the intraday chart, a 'Bullish Wolfe Wave' pattern support was seen around the 11200 mark in Nifty. After some tug-of-war around that support, the pattern played its role and the the index witnessed a bounce in the later half of the session. The pullback was majorly supported by the index heavyweight Reliance Industries and then some of the Pharma names too witnessed momentum in the end. Now, the immediate supports for the index are placed at 11185 and 11130. The way some of the stocks showed momentum in the last hour of the trade, we could see some bounce from the support of the above mentioned pattern. Hence, although we have been advising a sign of caution since last few days, one should now look for stock specific buying opportunities from a momentum trading perspective and avoid forming short positions. The immediate resistances are around 11360 and 11450."