Nifty zooms to 28-month high on further rate cut hopes - Angel Broking

Yesterday, our benchmark indices opened slightly higher as suggested by the SGX Nifty. Bulls then built up on these early gains and momentum accelerated as the day progressed. Eventually, indices ended the session almost at the highest point of the day. For the day all the sectors ended with gains amongst which Realty, Banking and Capital Goods stocks were among the major gainers. The advance to decline ratio was strongly in favor of advancing counters. (A=1466 D = 973)(Source-www.bseindia.com)

- The '20-week EMA' and the '20-day EMA' are placed at 19236/ 5846 and 19541/ 5952 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19212/ 5836 and 18846 / 5724, respectively.

After a range bound session on Tuesday, indices started yesterday's session on a positive note. Right from the first trade, indices kept moving higher on the back of tremendous buying interest. This has eventually resulted in a breakout and closing well above the 'Horizontal Line' (as shown in the chart). Indices have now registered a new '52 week high' on closing basis. Considering current strong optimism, we expect our market to move higher towards 20438 - 20700 / 6200 - 6280 levels. On the flipside, 20096 - 19938 / 6116 - 6060 would provide decent intraday support for our market. Considering the daily chart, we are of the opinion that Tuesday's low of 19652 / 5970 (also coincides with hourly '89 EMA') has now become a strong near term base for our market. Hence, only a violation of this level would result in loss of near term optimism.

Yesterday, Bank Nifty opened on an optimistic note and gained strength as the day progressed to close with a gain of 3.93%. In this process the index registered a new '52 - Week' high in line with our benchmark indices. The indices are now a blink away from its life time high of 13300 which should act as a minor resistance in coming trading sessions. Some consolidation near these levels is likely and thus we advise traders to book partial profits in their long positions and wait for a dip to create fresh longs. For the day 13300 levels are likely to act as resistance and 12961 - 12876 levels are likely to act as support.

Source : Equity Bulls

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