Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Once again the escalated concerns over Sino-US trade war spooked the market participants across the globe. Fortunately for us, we did not react so negatively to this development as some of the global peers did. After seeing a marginal cut at the opening, the index picked up strong momentum in the upward direction in first 30 minutes of trade. In the process, Nifty managed to reclaim the 12000 mark. However, the selling recurred at higher levels; resulting into a nosedive below 11950 at the midst. By the grace of god, traders / investors were given yet another opportunity to smile as we witnessed not only a v-shaped recovery but also a convincing break above morning high to end the session by adding over four tenths of a percent to the bulls' kitty.
If we take a glance of our previous article, today's smart recovery is no surprise to us. Despite all in between hiccups we are reluctant to change our positive stance. We continued with our 'Buy on declines' strategy and as expected, the market was setting up around key support of 11950 to unfold the next leg of the rally. Today's late surge certainly validates this point and the way both (Nifty and Bank Nifty) key indices are shaped up now, we will not be surprised to see decent moves in next couple of days. Going ahead, the Nifty is likely to continue its march towards 12090 - 12140 and on the downside, 12000 followed by 11930 has now become a sacrosanct support zone.
Traders are advised to be with the larger trend and should ideally refrain from taking contradictory bets against the major direction on a positional basis. Clearly, the banking has set the tone today with private bank giant 'ICICI Bank' continues its dream run to hit fresh record highs. Also, stocks from the 'Tata Group' conglomerates kept buzzing throughout the day and the Metal space which has taken a beating in last couple of days attracted strong buying at lower levels. Last but certainly not the least, we continue to remain sanguine on 'Pharma' space and thus, one should keep focusing on all these mentioned potential movers."