Nifty off 400 points from lows before anyone could realize it, expect further recovery: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"A slew of announcement from FM Sitharaman on Friday evening caused massive gap up opening in our market. However, immediately index lost this early morning lead which was a knee jerk reaction of escalated trade war between the US and China. Due to this, index not only erased all opening gains but also went on to sneak well inside the negative territory. Things looked extremely bleak at one point of time, but fortunately, we witnessed enormous buying interest at lower levels which kept on accelerating till the closing point of the day. Eventually, Nifty concluded with a colossal intraday rally of more than 300 points from the low and 200 points from the previous close.
In our sense, previous session had set the tone for what we witnessed today during the session. Friday's recovery was crucial for our markets and hence, the early morning dip today was bought into with some authority. It is easy saying in the hindsight but considering our intraday stance, we were not surprises with this colossal move. This is typical kind of session, when most of the market participants are left clue less and markets are off considerably from the lows before anyone could realise it. Now the point is what's next? In our sense this rally has further legs to unfold and immediately, we expect it to get extended towards 11150 - 11250 levels.
Hence, traders are advised not to take any contradictory bets and should rather use dips to go long. Ideally, the stock specific approach would fetch better opportunities and hence, one should keep focusing on such potential candidates. As far as support is concerned, 11000 followed by 10930 would be seen as immediate levels for the index."