Financial space drives the rally, base shifts at 10689: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today since morning, global markets looked a bit nervous and despite SGX Nifty indicating a gap down opening, we started the session marginally higher. But it was merely a formality as we started correcting in the initial trades, which extended in the following couple of hours to sneak below 10700. Fortunately, the mighty bulls waiting for the decline, just pounced on it and as a result, we witnessed a v-shaped recovery throughout the remaining part of the day to conclude around the 10800 mark.
Today's activity can easily be divided into two parts. First half where bears had dominated the proceedings and the latter one, which belongs to the mighty bulls. In fact the major driver this time was the financial space. We saw some muted activity since last couple of days in the banking and NBFC conglomerates; but all of a sudden, the entire basket started buzzing and few stocks from this, surged as if there is no tomorrow. And as we all know, when financial space moves, the Nifty does not need any support from elsewhere.
Now, the way Bank Nifty is shaped up, we expect the rally to extend in Nifty as well towards 10850-10925 levels. On the flipside, 10750 followed by 10689 would now be seen as intraday supports. With today's activity, the momentum traders can shift their stop losses below 10689 now, because a slide below this would result into a strong bout of profit booking. Also, we continue to advocate booking profits (For momentum traders) in the ongoing rally."