Nifty close above previous high after thirteen sessions: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Similar to recent pattern, our markets opened lower which was clearly a reaction to the relentless fall in global markets due to the escalation of US-China trade war. However, once again, we saw a v-shaped recovery which extended in the latter half to close above previous day's high for the first time after thirteen sessions. This may be a coincidence but looks like this Fibonacci number (13) has played its part to a great extent. It is rare to see of late but we have finally managed to clock decent gains of nearly eight tenths of a percent.
Today morning, when we were about to open, there was massive recovery seen in global markets just ahead of that. And hence, we did not even wander for a minute around day's low. This may be the reason of today's recovery but if we refer to our previous article, few technical indicators were clearly hinting towards the possibility of this scenario. As mentioned, the 'Bullish Hammer' pattern formed yesterday has now been confirmed on a daily chart. We were expecting a relief move towards 11000 - 11100 and Nifty has reached the first level today itself. Going ahead, once we surpasses today's high of 11018.55, we could see extension of today's bounce towards 11100 - 11150 levels and considering the broad based rally today, the probability is quite high. On the flipside, 10886 - 10813 would now be seen as immediate supports.
Today the entire 'Auto' and 'Auto Ancillary' space was on a roll and the 'Midcap' index was clearly outperforming all other indices. Hence, one should keep focusing on such potential candidates who are poised for some relief move."