Bulls delighted ahead of Diwali, hope to have fabulous SAMVAT: Angel Broking
(Time Zone: Arizona, USA)
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Year 2020 has not been great for mankind as we have had to make a lot of forceful changes in our lives. The pandemic weighed down heavily on health as well as on economies across the world. But it seems that slowly and steadily things are coming back to normal. In fact, a lot of positivity across the globe lifted markets at fresh record highs. This week, the first three trading sessions were almost a replica of each other to register a new high of 12769.75. This was followed by some consolidation ahead of the Muhurat trading session to conclude above the 12700 mark by adding nearly four percent on a weekly basis.
Last week, we had witnessed a 'Bullish Flag' breakout around 12050 and since then markets never looked back. With its marathon rally in merely eight days, markets are very much in a commanding position. All's well that ends well and hence, from hereon we can see a brighter picture till the next SAMVAT. Looking at the daily chart, we can observe a couple of encouraging developments on charts. The 'RSI-Smoothened' is moving northwards after entering the bullish territory above 70 and adding to this, the 'ADX (14)' is becoming stronger as we can see its value rising well above the 25 mark. Generally, when we see these conditions together, it provides impetus to the rally. Hence, any dip towards 12600 - 12450 should be used as a buying opportunity. On the upside, the next milestone of 13000 is likely to be achieved very soon; in fact, we do not rule out the possibility of reaching 13100 - 13200 in the forthcoming week itself.
Traders are advised not to expect any meaningful correction in the near future and hence, do not venture into taking contradictory bets in such strong Bull Run. We are sounding extremely optimistic because almost all major sectors are contributing to this surge and hence, can be considered a robust one. The broader market has also started to give some mesmerizing moves and mind you, this is just a beginning of the mega Bull Run. So fasten your seat belts and gear up to take off post Diwali as well.