Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Of late, our markets have been overlooking the weakness in the global peers. Today since we had a cheerful mood across the globe, our markets had all reasons to open higher. We kick started the day with decent upside gap and then continued this climb to reach yet another psychological figure of 11300. Barring the initial and the penultimate hour, we witnessed a bit of consolidation in today's session. But eventually, we managed to close firm by adding over a percent to the bulls' kitty.
Last Tuesday, the stage was set for the rally and today exactly after a week; the Nifty is very much at the elevated levels by clocking 400 points in such a short span. In fact, last couple of sessions' has been excellent as we are experiencing flurry of gap up openings. This development has some significance as per the technical study of the market. Last Wednesday, it started with a 'Breakaway Gap' as we had a breakout from the crucial hurdle with a gap. In last couple of days, we have seen gap up opening; but today's leap can perfectly be termed as a 'Runaway Gap'. Such situation happens, when there is sudden rush seen in the middle of any move as most of the traders start having a left out feeling.
The index is now at our mentioned levels of 11300 - 11350 and it has come much sooner than we had anticipated it. Undoubtedly, the trend remains bullish; but since it has reached the higher end of the 'Megaphone' pattern, we may see a bit of consolidation or mild profit booking in next couple of days. However, by mentioning this, we nowhere advise going short in the market. In our sense, the trend has become obvious and since we are at important junction, we may not see the similar kind moves in the market. For the coming session, 11340 - 11360 would be seen as immediate hurdle and on the downside, 11264 followed by 11227 is likely to act as a strong support zone. It would be unfair if we don't mention the Banknifty's contribution in the recent run. With today's move, banking index has clocked fresh record highs, which certainly is an achievement. One needs to understand that the low hanging fruit is gone now and hence, one needs to be very selective while picking up a stock."