Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"What a splendid series it was for our markets as it brought back wide smile on traders' / investors' faces. And there couldn't have been better end to it as we saw Nifty surpassing its resistance zone with an authority and thereby removing some ambiguity about the near term direction. Eventually, the series concluded with whopping gains of more than 7% (series on series); highest after March 2016.
Recently, traders were extremely skeptical about Nifty crossing this ceiling of 10750 - 10800. Today, massive bump at the opening resulted in breaking this multiple resistance zone with an authority; courtesy to gigantic overnight rally in US bourses. Then further developments in some of the heavyweight pockets ensured this breakout on a closing basis. Now, going by the 'Gap Theory', a breach of any major resistance with an upside gap is known as a 'Breakaway Gap' and is considered as a sign of strength. Hence, going ahead, we continue to remain upbeat and expect the rally to extend immediately towards 10920 - 11000 levels. On the flipside, today's gap area of 10782 - 10757 is likely to act as a key support zone now.
As we had highlighted if Nifty has to surpass this hurdle of 10750 - 10800, banking counters needs to step up and this is what we saw today especially in the latter half. Apart from this, lot of individual pockets did well during the day and hence, we expect traders to get better opportunities for next few days."