Bank Nifty successfully defended 200-day SMA: Angel Broking

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

"Today's gap down opening along with the immediate correction was clearly a catch up move as our markets remained shut on Friday due to the 'Holi' festival. We had to somehow make that adjustment to be in-line with the global peers. Barring some recovery in the antepenultimate hour, the index traded with negative bias to eventually close tad above the 10350 mark.

At the end of today's session, we are in complete dilemma now as we can see entirely contrasting close from two key indices, the Nifty and the Bank Nifty. We were closely keeping a track of 10400 for Nifty, which has been violated now; but at the same time, the banking index has managed to defend its make or break level of 24780 on a closing basis. In fact, all major components of Bank Nifty are indicating some relief move from their current support zones. So, we are in two minds whether to go with the benchmark index or the major contributor Bank Nifty. Hence, it would be a prudent ploy to revise the support level a bit for Nifty in order to trigger some momentum in the immediate future. Now, 10300 would be seen as crucial support and breach below this important junction would extend this corrective move towards the '200-day SMA' placed around 10140.

Having said that if we have to pre-empt any direction, we would give more weightage to the way Bank Nifty is shaped up. We will not be surprised to see some bounce back in the market; courtesy to the heavyweight banking basket. We reiterate that within this consolidation, one should ideally remain light on index and focus more on individual stocks."

Source : Equity Bulls

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