Stupendous v-shaped recovery in 3 sessions, markets back to uncharted terrain: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):

"Following the positive global cues, we started the day on a positive note, but immediately the indices corrected from the opening level within five minutes. However, traders took this dip as a buying opportunity and the index marched higher to register a high of over 14850 mark. It gave up some of the gains in the last hour, but still managed to end the day at 14790 with gains of almost a percent.

The bulls are in no mood to give up and our markets have overwhelmed traders and investors post the Union Budget. Nifty continues to clock new records and is now not far from creating a new history of 15000 mark. Now, Nifty is into uncharted terrain and in such scenarios, conventional trend lines and Fibonacci Ratios usually help us to see probable target/resistance zones. Considering this, if we join recent two swing highs of January, then a trendline resistance for Nifty is seen in the range of 14850-14900 (which Nifty achieved today). If we manage to surpass this resistance with an ease, then the next level to watch out will be around 15070 which is the 127% retracement of the recent correction. On the flipside, today's low of 15474 will be seen as an immediate support for Nifty. Traders are advised to keep a tab on these levels and trade in the direction of the trend.

In the last three sessions, almost all sectors have participated with many stocks showing eye popping moves. While the banking space already has rallied sharply in the last couple of sessions, other sectors such as Pharma and the PSE's were seen buzzing today. Such sector/stock specific themes are likely to provide good opportunities to traders and hence, one should look for and capitalize on such potential movers."

Source : Equity Bulls

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