Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Last couple of days have been excellent for our markets, in fact best trading sessions since April 30. Prior to yesterday's session, we were significantly underperforming our global peers. But finally our markets showed strength and have witnessed a decent catch up move from the key support of 9000. Yesterday's massive rally was followed by yet another smart day of trade to conclude the May contract at the highest point of the series (on a closing basis).
At the start of the week, we carried our bullish inclination after observing a positive divergence in RSI Smoothened in the hourly chart of BankNifty on Friday. This anticipation played out well and with weakest link (banking space) taking the charge, the Nifty got elevated towards 9500 before anyone could realise. Nifty has now reached to our immediate target of 9450 - 9500, but the way charts are shaped up, we expect the Nifty to enter a downside gap area of 9532-9731 created on May 04, 2020. On the flipside, 9380 followed by 9250 would now be seen as a sacrosanct support.
As we have just alluded, last two day's rally is clearly propelled by the banking space and as we all know, whenever the banking conglomerates starts participating in any rally, it is considered to be a robust one. Hence, traders should look to use declines to go long and ideally the stock centric approach would fetch better trading opportunities as well as the higher potential gains."