Market Wrap - Mr. Santosh Meena, Senior Analyst, TradingBells
The market is rejoicing near an all-time high where after Sensex, Nifty and Banknifty both hit their fresh all-time high of 12132 and 31850 respectively. Some profit booking was seen from higher levels but bullish momentum is still intact. We were already in a bullish trend where one step backward and two steps forward texture is continued in the market. Global cues especially positive development on the US-China trade deal front is driving the latest momentum in the market.
On Derivative front, Heavy short positions were created in index future by FIIs around 12000 mark and there were many short positions at 12000 strike call option by many traders as market was showing some tiredness in 12000-12100 zone but they didn't get follow through to their short positions as Nifty witnessed smart bounce back from its 20-DMA of 11880 with the help of positive global cues that pushed bears on back foot to cover their short positions and their short covering led a stellar rally in market in yesterday's trading session.
The market is likely to continue its bullish momentum where Nifty may head towards 12300/12500 levels in the coming days whereas Banknifty may head towards 32500/33000 levels. In the downside 20-DMA of 11925 has become a strong base for the Nifty.