Some reality check at 10200, no room for complacency: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"For the third consecutive session, our markets opened with an upside gap, owing to positive cues from the global bourses. Today, it was certainly a notable opening because we started the proceedings convincingly beyond the 10000 mark. In fact, the buying momentum continued as the day progressed to hasten towards 10200. However, market suddenly took a nosedive towards the fag end of the day and within a blink of an eye, we were considerably off day's high. In the midst of this, Nifty managed to close inside the positive territory.
Last couple of weeks have been excellent for our markets and in the process, we finally reclaimed the five digit mark of 10000. Today's extended move was clearly propelled by the banking space and at one point of time, we could see crazy up move in Banknifty as if there is no tomorrow. But somewhere market has to oblige the law of gravity and this is what we saw in last 45 minutes of trade. The BankNifty literally nosedived and within no time, shaved off sizeable portion of gains. Practically, such in between reality checks are important for markets as it eliminates complacent traders from the market.
Now technically speaking, we have seen a series of upward gaps and hence, today's can be termed as a 'Continuation gap'. We hope the same remains unfilled in coming days, because an immediate gap filling process will lead to 'Exhaustion Gap' and the same generally applies brakes on the ongoing momentum. We need to see how market behaves especially BankNifty (because the daily formation is not encouraging). For Nifty, 10000 followed by 9900 would be seen as crucial supports; whereas on the flipside, it would be important to surpass 10200 in order to continue this upmove towards 10400-10600 levels."