Covid Relief package by PM uplifts market sentiments: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"Our markets opened gap up in today's session post the announcement of the Prime Minister's stimulus package.However, it gave up some of the gains in the first half and hour and then consolidated for rest of the session within the range of 9350-9430. Nifty ultimately ended the day with gains of over 2 percent at 9383.
In yesterday' session, the indices recovered from the support zone of 9000-9100 and ended with hopes of a pullback move. In his address to the nation in the evening, the Prime Minister announced a substantial Covid relief package of about 10 percent of GDP which excited the market participants. Hence, inspite of the negative cues from the US bourses, Nifty witnessed a huge gap up opening around the 9600 mark. This positive opening filled the gap area of the recent 'island reversal' pattern on Nifty and the index then gave up some of those gains in first half an hour. Nifty then hovered around the 9400 mark for rest of the session with stock specific momentum. Since last couple of weeks, Nifty has been consolidating in a range and we witnessed some buying interest from the support end of the range at 9000-9100. We expect the index to trade with a positive bias in the near term till the mentioned support is intact. For the coming session, 9240 will be the intraday support to watch out and any decline around it could be used as a buying opportunity. On the higher side, 9530 and 9600 will be seen as immediate resistances. Traders are advised to look for stock specific opportunities and trade with a positive bias."