Nifty extends its bounce back, reclaims 14900: Angel Broking
(Time Zone: Arizona, USA)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Following the positive global cues, we had another session with a positive opening as Nifty started the day above 14850 mark. The index continued the momentum in the first hour of the trade but it then corrected from 14930 and gave up the intraday gains before noon itself. The index then consolidated within a range but it was not over yet. Nifty suddenly witnessed a sharp surge in the last half an hour and surpassed the morning highs to end the day above 14900, with gains of over a percent.
The index has seen a fair bit of volatility in today's session but the market breadth was in favor of advances throughout the day as we had seen a good stock specific action from the broader markets. The Nifty Midcap index surpassed its recent swing high and is in an uncharted territory, thus showing its outperformance to the benchmark. Even the Auto space today was buzzing as the stocks from the sector rallied sharply post the monthly sales numbers. On the other hand, the banking space showed relative underperformance throughout the day as the banking index is yet to recover the recent losses. From a technical perspective, the Nifty has now entered the Friday's gap zone of 14920-15065 and hence it would be crucial to see the index movement from hereon. A move above the gap and then the swing high of 15177 will then negate the recent lower top lower bottom structure on the index. However, since the banking space has not yet shown signs of resumption of the uptrend, we would advise traders to avoid aggressive positions and prefer trading with a stock specific approach from a near term perspective. The intraday supports for the Nifty are placed around 14820 followed by 14760 whereas resistances are seen around 15065 and 15177."