Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"In the morning, we had a perfect set up to kick start the proceedings for the week on a cheerful note. The Crude oil continued its losing streak, the domestic currency cooled off quite a bit to reach the 70 mark and the global peers were trading on an optimistic note. Despite all these favorable factors, we opened higher but immediately started correcting to even sneak below 10500 in the first half. However, there was complete turnaround seen in the latter half as we saw massive buying interest across the board to clock smart rally with nearly a percent gains.
Technically speaking, if we look at the hourly chart, Nifty was oscillating within the boundaries of a 'Falling Wedge' pattern. Quite precisely, Nifty managed to find the support at the lower end of this pattern (which coincided with our mentioned support of 10500) and then went on to confirm a breakout from the higher end i.e. 10580. The immediate impact of this price development was seen during the session and going ahead, we will not be surprised to see Nifty extending this move towards 10690 - 10740 levels. With today's move, the ambiguity seems to have disappeared now. For the coming session, in case of any decline towards 10600 - 10570, momentum traders are advised to use this as a buying opportunity.
In our previous article, we had opined about banking index playing a vital role. Today, undoubtedly, the banking universe was the charioteer of this stellar intraday rally. And the way it has closed with lot of positivity, we expect banking space to propel further rally in the market. Also, the buying was seen in the broader market and thus, we expect traders to get better trading opportunities with a short term view."