Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"The benchmark indices started the week marginally negative as the Nifty sneaked below 10900 in the first 15 minutes of the trade. However, this early morning dip was bought into as the index recovered sharply to reclaim the 11000 mark. For rest of the session, there was good stock specific momentum whereas the index consolidated in a range to end around 11000, with gains of over half-a-percent.
It was flawless day for traders (with bullish view) wherein the index provided a good buying opportunity in the initial few minutes post opening. Post registering a low tad below 10900, the Nifty rallied smartly along with broad market participation and reclaimed the 11000 mark. In this process, both the indices Nifty and BankNifty surpassed the high of the 'Dragonfly Doji' pattern formed on the weekly chart and have closed above the same, thus confirming a reversal. Although the index consolidated around 11000 for most part of the session, the stock specific momentum in the broader markets provided good trading opportunities. Except IT, most of the sectors participated in the upmove and the Midcap index witnessed outperformance. As mentioned in our previous reports, the upmove in the midcap space is much on expected lines considering this is the probable reversal month as per the 'Fibonacci Time Retracement'. Considering Monday's move in the broader markets, we expect the index to head towards the 11100-11180 mark soon (which we eventually expect to be surpassed). On the flipside, the immediate supports for the index are placed around 10950 and 10880.
Traders are advised to trade with a positive bias and look to pick stocks from the midcap space which are likely to provide outperformance in short-term."