Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"After three days of pain, market participants certainly had a great day of trade. Benchmarks started off well with a marginal upside gap, taking cues from the US bourses and then kept on marching higher throughout the remaining part to clock decent gains. Eventually, the index managed to reclaim the 10700 mark on closing basis.
With reference to previous article, 10640 - 10600 according to us was a strong support zone (earlier breakout point) and we had expressed an outright chance of rebounding towards 10700 - 10720, despite not so good close on Friday's session. The anticipation worked well and now looking at the hourly chart, we may expect continuation of this move towards 10740 - 10780 in the coming session. However, having said that, we would remain a bit persistent on advocating staying light around recent highs. For the coming session, one should rather focus on individual stocks with a proper exit strategy. As far as support is concerned, 10690 followed by 10640 would be seen as an immediate range in the downward direction.
Today's rally was mainly propelled by the heavyweight 'banking' space. Some life was seen in 'PSU' banks and at the same time, 'ICICI Bank' managed to clock decent gains ahead of its quarterly numbers. Hence, traders need to keep a close eye on these developments as well."