Nifty reclaims 14700 but financials sulking a bit : Angel Broking
(Time Zone: Arizona, USA)
Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The global picture changed a bit between yesterday's close and today's open. The Dow future was trading deeply in red yesterday while we closed; but after this there was a v-shaped recovery seen in their market and the optimism continued today early morning as well. Taking such strong cues into the consideration, our markets had a surprising bump up at the opening convincingly beyond 14700. After the initial hiccup, the Nifty started rebounding sharply to test the 14850 mark. However, since the market is in a profit booking mode , it failed to sustain at higher levels. As a result, the Nifty gave up major chunk of its gains to conclude with nominal gains above 14700.
After yesterday's hammering, our market rebounded sharply in the first half today; because the prices were a bit oversold which was then supported by the global recovery. However, it failed to sustain at higher levels as we saw individual pockets once again started feeling the heat. If we meticulously observe today's high, it precisely coincided with the '20-day EMA' and hence, acted as a sturdy wall. Going ahead, till the time Nifty doesn't go beyond 14900 - 15000, the short term momentum is likely to be on the downside. Hence, traders are continuously advised to use intraday recoveries to lighten up longs. The immediate resistance zone remains at 14775 - 14850; whereas 14665 followed by 14635 are to be seen as key supports. The way Nifty is shaped up, we will not be surprised to see Nifty sliding below these supports soon to test 14570 - 14470 levels.
As far as sectoral activity is concerned, Metal stocks continue to enjoy their dream run for the second consecutive session. However, financial space kept sulking throughout the day with few other heavyweight pockets."