Banking space leads to some pullback in benchmark indices : Angel Broking
(Time Zone: UTC)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"During the mid-week holiday, the SGX Nifty was indicating probability of a decent gap up opening. However, the Nifty started the weekly expiry day marginally positive as the IT giant Infy opened with a gap down post is results. Nifty then corrected for the initial couple of hours to mark a low around 14350 mark. But its was not over yet, the banking and the financial space witnessed some good momentum and pulled the Nifty higher again in last couple of hours to end tad below 14600 with gains of over half a percent.
In today's session, we witnessed a correction followed by some consolidation in the Nifty index. But the banking space was showing relative strength and as this space rallied in the last couple of hours, Nifty index too managed to end higher. In last couple of sessions, Nifty has now trimmed much of the Monday's losses while the banking index is now trading in the gap area. This pullback in Nifty has relieved the oversold momentum set ups on lower time frame charts and thus, the gap area and the '20 DEMA' at 14650-14700 will be seen as immediate resistances. It would be prudent to see whether the index surpass that resistance at the weekly closing or it reverses again from that hurdle. Traders are advised to focus on stock specific action and avoid aggressive bets in this pullback. On the flipside, 14460 followed by 14350 would be seen as intraday supports."