Finally a new high for banking index: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst - Technical and Derivatives, Angel Broking):

"Finally, after three days of consolidation, we could see some action in our benchmark indices. The Nifty opened higher and then continued its upward trajectory during the remaining part of the session. This move was mainly propelled by the banking space, which contributes heavily when it comes to index computation. The underperformance from the banking index came to an end as we saw Bank Nifty surpassing previous hurdles to clock record highs around the 25500 mark.

The unstoppable run continues for our markets as we saw Nifty adding more than 27% on YTD basis. This certainly is a remarkable achievement for our market. Now, with reference to our weekly article, the index is clearly heading towards the 161% (Golden Ratio) reciprocal retracement level (10482) of the recent down move. In fact, due to today's surge, it's just at a kissing distance now. Since, it's a major level as per the Fibonacci ratios, traders are advised to lighten up some positions and wait for further developments as we may see some hint of profit booking around it. On the downside, 10383 – 10311 would be seen as immediate support levels."

Source : Equity Bulls

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