Nifty continues its upmove, midcaps in momentum: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Following the positive cues from the Asian bourses, our markets started trading for the week with a gap up above the 10700 mark. The index continued the momentum and tested 10800 as well during the day, before settling with gains of about one and a half percent at 10764.
The indices continued its northward journey and rallied to test the 10800 mark today. Although the index traded within a range post the gap up opening, the biasness was clearly positive as stocks from the broader markets witnessed good momentum throughout the day. Many stocks from the cash segment witnessed sharp upmoves supported by higher volumes, thus providing good opportunities for traders. If we look at the index, Nifty has now approached the resistance zone of 10800-11000 which coincides with the '200 SMA' on the daily chart. However, so far, there are no signs of reversal and hence, one should avoid taking any contra bet. With today's gap, 10700-10630 will now be seen as the immediate support for the index.
The Nifty Midcap50 index has surpassed its swing high and its '200 SMA', indicating that stocks from the midcap space could continue to provide good opportunities for momentum traders. Hence, traders are advised to look for stock specific opportunities at the moment. Also, it is advisable not to carry heavy positions overnight till we surpass the immediate hurdle of 11000."