Banking and Auto counters lifted markets higher, optimism to extend further: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Markets opened flat as there was no major trigger on the global as well as domestic front. During the first half, index did not have any strength to climb higher and hence, we almost went back to yesterday's low. Fortunately, there was sudden buying interest seen at lower levels and hence, markets reversed before it breaks previous day's low. In fact, as we were approaching the fag end of the session; the buying momentum accelerated across the broader market, leading Nifty to close at the highest point of the day by clocking over half a percent gains.
With reference to our previous article, we had highlighted about Nifty finding some support around key technical moving averages on hourly chart and hence, the subsequent session would be quite crucial or we can say, may turn out to be a trend decider for next few days. Very much in-line with this, Nifty went closer to previous day's low of 11549; but successfully managed to defend it. This clearly brought mighty bulls back into the action and as a result, we saw good trended move throughout the second half. This has clearly set the tone for the forthcoming session and we will not be surprised to see a gap up opening tomorrow. The Nifty is now at the cusp of important 'Falling trend Line' resistance of 11675. We would see acceleration after surpassing this level to test 11710 first and then towards all time high of 11761. On the flipside, the immediate support is now placed in the zone of 11638 - 11569 levels.
Today's rally was undoubtedly propelled by the heavyweight banking conglomerates. In addition, the midcap universe too had a smart rally to defend key support levels. Traders are repeatedly advised to stay on the positive side and along with above mentioned sectors, can keep a close eye on 'Auto' counters, that are clearly gearing up for strong moves.