Nifty resumes momentum led by heavyweights: Angel Broking
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"The index started today's session marginally positive in line with the global cues. However, the initial dip in first 15 minutes of trade was bought into and the index then rallied higher throughout the day to end with gains over 200 points.
Nifty had ended yesterday's session in the vicinity of its support zone of 10870-10900, which was the previous breakout level as well as the '200 SMA' on the daily chart. This support zone played it role well and the index resumed the momentum today led by the index heavyweights such as Reliance Ind. and HDFC Bank. Apart from the index heavyweight RIL, the private banking space too participated as the Bank Nifty defended its swing low of 21027. With this pullback, the index continues the 'Higher Top Higher Bottom' structure and forms a higher low i.e. a higher support base at 10880. Thus, the near term continues to be positive now till 10880 remains intact. Hence, traders are advised to trade with a positive bias and look for buying opportunities in intraday declines. On the flipside, 11250-11300 would be immediate target zone to watch our for.
Yesterday we mentioned about the positive market breadth in falling market with midcaps showing a relative outperformance. The midcap space continued its momentum and now the banking and financial stocks too could participate to cover up for their recent underperformance. Thus, we continue with out advice to look for such stock specific opportunities which could provide good returns in the near term."