Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Today's session was clearly a nightmare for the bears and especially for those who created fresh shorts during yesterday's stock specific mayhem. Undoubtedly, many traders left clueless with the kind of bounce back move we witnessed in the broader market. We had a positivity right from the word go and markets did not even try to catch a breath even once during the session. As a result, the Nifty went on to thrash all intraday hurdles one after another to eventually conclude the week tad above the 10700 mark.
Now, the question is, are we done with the correction or this is just a relief rally? Honestly speaking, it is very difficult to make a comment at this juncture as the index closed precisely in the corridor of uncertainty. As a pessimist, I would interpret this as a bounce back towards the breakdown point which coincides with the daily '20 EMA' as well as the 'Rising Trendline' resistance. On the other hand, the way some of the individual stocks recovered during the session is a sign of strength. There are times when market confuses us and plays with our emotions; this is clearly one of those instances. Hence, to make it a bit easier, we would let market give further indications. Going ahead, 10740 - 10760 would be seen as a crucial hurdle. If index stays above it for a while then we may see extension of this move towards 10800 - 10830 and a failure of this would result into a decline to once again go back towards 10600 - 10550 levels.
Traders are advised to keep tracking these levels and should avoid aggressive bets till the time the picture remains unclear. However, having said that one can continue focusing on individual stocks that are offering better trading opportunities as compared to the index. One notable observation, the 'Nifty Infra' has shown tremendous come back and the chart structure indicate a possibility of recent correction getting over. Hence, one can look to identify and accumulate marquee names within this thematic index."