Nifty reclaims 11500, courtesy to late surge in banking stocks: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The overnight rally in US markets had a rub off effect on almost all major Asian bourses. Hence, we too started the day with a gap up opening despite yesterday's shaky session. Subsequently, similar to recent behaviour, index went into a consolidation mode and kept flirting around the 11500 mark. However from nowhere, a strong buying emerged in the banking conglomerates at the stroke of the penultimate hour. This pushed Nifty higher to end convincingly above 11500.
Indices seemed to have lost clear direction and are clearly trapped in a range. Yesterday, we witnessed strong sell off from higher levels and today, it was almost the reverse action. With today's late surge in banking stocks, both Nifty as well as BankNifty are interestingly poised. For Nifty, if 11570 is taken out, we would see some extension towards 11625 - 11675 levels and if this has to happen, the banking stocks needs to replicate today's move. On the flipside, 11450 followed by 11380 are to be seen as key supports.
Today for the second day, stocks from the broader market kept buzzing. However, this is nowhere similar to mid n small cap rally that we witnessed in previous couple of months. Hence, one needs to pick the right stock and should keep booking timely profits. Apart from this, Pharma stocks had a good first half today after a brief pause of nearly 2-3 weeks. We reiterate, one should follow stock specific moves but avoid aggressive bets."