Indecision continues but no worry as banking on the cusp of a breakout: Angel Broking

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

"Today's session was almost a replica of previous day, the only difference was, we fell from higher levels in the latter half yesterday and today, we recovered after correcting in the first half. Overall, the bias remained neutral as we are experiencing some indecision with index per se. However, the stock specific action still continues in the market as we saw good participation from the broader end of the spectrum. Eventually, the truncated week post the Diwali festival concluded with handsome gains over a couple of percent.

Recently, the Nifty has been struggling to surpass the sturdy wall of 11650 - 11700. On the opening day of the week gone by, we saw index surpassing this barrier with an ease and from there, we continued our march towards 11900. Now, SENSEX already posting a fresh high, the Nifty is not going to shy away for a long time. Soon, we would be witnessing Nifty traversing the 12000 mark to go beyond its record high of 12103.05. Before this some brakes seems to have applied on the recent momentum. As we highlighted in our Friday's article, last two day's narrow range body formation indicates indecision or a profit booking and by no means, we construe this as a sign of caution. In our sense, the northward trajectory is likely to continue and soon we are likely to be heading higher to reach new milestones.

We are sounding extremely sanguine, because in the recent move from 11400, the overall market breadth has improved drastically and it's always a sign of a robust rally. Lot of beaten down sectors / counters are finally out of their slumber and are showing some encouraging signs. Clearly the AUTO and PHARMA belongs to this category and the METAL space, which was on a roll this week. Do watch out for these spaces as they are not done yet, rather this is just a beginning. Last but certainly not least, the banking index, which has been slightly underperforming of late, is on the cusp of giving a breakout from crucial resistance zone. If it confirms this, no brainer, Nifty is heading towards new high. For the coming week, 11843 - 11776 - 11714 would be seen as immediate support levels. In case of a decline towards these crucial junctions, traders are advised to use it as an opportunity to go long with a positional perspective."

Source : Equity Bulls

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