Nifty PSU bank index hastening towards crucial support: Angel Broking

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

"Today, our markets kick started the proceedings on a positive note citing to strong overnight cues from the US bourses. However, this enthusiasm lasted merely for few minutes as we saw good amount of selling pressure at higher levels and as a result, the index remained under pressure for the remaining part of the day to eventually conclude with a cut of 0.27%.

With reference to previous article, we highlighted important hurdle of 10640 for Nifty. This level certainly proved its worth today as we saw Nifty falling after posting a high of 10631.65 in initial trades. Hence, we continue to consider this as a crucial level for coming session. On the lower side, 10500 has become an immediate base. Any sustainable breakout from the range of 10640 - 10500 would dictate immediate direction for the index. Having said that we continue to believe that breaking above 10640 would extend this relief rally towards 10700 - 10750; but it certainly does not change the broader picture, which turned in favor of the bears couple of weeks back. For a time being, traders should focus on these crucial levels and should position themselves accordingly.

The banking index was the major culprit today, courtesy to yet another negative news flow with regards to 'PNB'. 'Nifty PSU Bank' index is hastening towards its crucial support of 2928 and hence, traders should keep a close eye on this important junction as well."

Source : Equity Bulls

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