Finally 11000 conquered, now 11400 in sight: Angel Broking

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

"Finally, a bright sunshine is seen in our markets after undergoing a challenging period in last month and a half. We started proceedings with a decent upside gap on the back of favorable global cues. During the first half, index consolidated with a positive bias; but, there was massive destruction being witnessed in the broader market. Fortunately for us, index picked up a strong momentum post the midsession and there was massive short covering rally seen across the board. In the process, Nifty went on to close at 5-month high by clocking more than a percent gains.

Our benchmark has been on a roll since last four days; but till first half today, broader market looked dejected. As expected, after index surpassing and maintaining above the sturdy wall of 11000, lot of beaten down stocks started rebounding sharply. Since last few days, we have been mentioning the possibility of Nifty surpassing 11000 and its reality now. As far as levels are concerned, a fresh leg of the rally is unfolded and we expect Nifty to immediately hasten towards 11200. In fact, in our sense, we will not be surprised to see index extending this move towards 11400 in next few days. Hence, one should trade with a positive bias and use any dip towards 11000 - 10960 as a buying opportunity.

Today, banking index seemed quiet ahead of the RBI monetary policy. However, with lot of hopes built in this time for a rate cut from the new governor, this may provide impetus to a rate sensitive universe. Apart from this, 'Auto' and 'Metal' sectors are on a roll since few days and are clearly on the revival path. Further, we would like to highlight one notable observation; few 'Pharmaceutical' stocks today soared to a great extent and others managed to give a smart recovery after recent relentless underperformance. Hence, traders holding short positions should now look to cover up as we may see a sharp bounce back in this extremely oversold pocket."

Source : Equity Bulls

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