Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"After an extended weekend, our markets opened flat despite SGX Nifty suggesting a gap down opening. During the initial trade, Nifty dipped a bit; but after this what we witnessed is 'Once in a Blue Moon' kind of scenario. This early morning decline was bought into and then we had a good one way up move throughout the session to conclude at the highest point of the day by adding over a percent to the bulls' kitty.
Most of the uncertainty on the global as well as domestic front is behind us now and our markets gave it a big 'Thumbs up' as there was no unfavorable outcome from these developments. In fact, during the second half, we saw complete gush in the market as there were few heavyweight pockets like banking and Oil & Gas had soaring moves. Adding to this, we have been mentioning about midcap basket attracting some buying interest since last few days. The 'midcap' index finally had a colossal intraday rally to confirm a 'Triangle' pattern breakout on daily chart. Hence, we continue to remain upbeat on this space and expect further legs to unfold in the upward direction.
Now, let's focus on how chart is shaped up for our benchmark index 'Nifty'. We did not see any major action in last few days; but with today's decent move, we are seeing some encouraging signs on daily chart. Index is now at a kissing distance from surpassing the 'Downward trend Line' resistance of 11000 - 11030. Looking at the overall set up, we expect it to happen in the forthcoming session, which will open up further room to march towards 11000 and beyond levels. Also, if we observe daily chart meticulously, we can see a formation of 'Megaphone' pattern. Recent supports of 10583 and 10585 being the base of the same and the higher trend line is extended towards 11300 - 11350. Hence, a move towards this important junction cannot be ruled out in days to come. Traders are advised to trade with a positive bias and expect 10940 - 10817 to act as a strong support zone now."