Laggards (PSBs) turned into a gold: Angel Broking

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

"This certainly has to be one of the historical days of Indian markets and undoubtedly, PSU Banks (PSBs) were the 'Charioteer' of this memorable Day. This is probably the perfect example how things can turn overnight as we saw recent laggards (PSBs) turning into a gold by clocking colossal surge in a single day. As far as benchmark index is concerned, the Nifty registered fresh highs and reached yet another milestone of 10300.

It was clearly an one sided affair as we saw entire PSU banking basket along with couple of other heavyweights propelled today's move. Some of the other index constituents like HDFC twins, Private Banks, Pharma and IT somehow balanced out this move (to some extent) to eventually restrict the Nifty tad below the 10300 mark on a closing basis. Looking at today's move, it seems that the index has respected 127% retracement level of 10315 and hence, going forward; traders need to closely keep a watch whether the index manages to stay above this hurdle now. If this happens then we may see continuation of this relentless rally. However, on the flipside, today's gap area (10240.90 - 10237.75) would be seen as a key support in the coming session. Traders are advised to stay light on positions and keep following stock centric moves similar to what we witnessed today in either direction. We would like to give a piece of advice, if you are not going long on PSBs, it's understandable; but one needs to strictly avoid going short on it."

Source : Equity Bulls

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