Some respite on global cues, Auto and Metal stocks on a roll: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The global set up was just perfect for such head start early in the morning. Most of the global indices looked rejuvenated after Fed Chairman Powell hinting a rate cut in his last night's speech. We opened higher as indicated by the SGX Nifty; but some part of these gains got erased in initial trades. Fortunately, we witnessed a strong buying emerging at lower levels which accelerated in the latter half. In the end, despite a weekly expiry, markets remained stable to conclude with over seven tenths of a percent gains.
Since last three days, our markets have somehow managed to defend their 'make or break' support levels. However, we failed to surpass the sturdy wall of 11600 - 11630. Going ahead, it would be important for the Nifty to overcome this hurdle in order to regain some strength. If this happens, then we would see a decent bounce back towards 11700 - 11760. This scenario looks practical considering the sharp bounce back in the broader market. On the downside, 11550 followed by 11519 would be seen as crucial supports in the forthcoming session. We need to understand that the recent downtrend is yet to reverse and hence, traders are advised not to take aggressive positions in anticipation of this.
Since, we had a good broad based rally today; traders are advised to keep focusing on individual stocks. Clearly, the entire 'Auto' pack was on a roll after a long underperformance. Few key names from this pocket have turned upwards from their crucial multi-year lows. Apart from this, 'Metal' stocks were also buzzing throughout the day and hence, traders are advised to focus on such thematic ideas which may provide better trading opportunities."