Stock specific relief rally to continue: Angel Broking

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

"After an extended weekend, our markets opened on a cheerful note in-line with favorable global cues. In fact, the optimism extended as the day progressed to eventually surpass the 10200 mark on a closing basis. If we look at the index move, it does not portray the real picture as we saw real action in the broader market. During the day, lot of individual stocks soared to a great extent after many days of underperformance.

Now, if we look at the daily chart meticulously, we can observe Nifty oscillating within the boundaries of small 'Falling Channel'. The higher end of this pattern is at 10250 - 10280, which would be seen as immediate as well as important resistance zone. Looking at the individual stocks, a possibility of surpassing the higher boundary looks quite on cards. In this case, we may see this stock specific relief rally getting extended towards 10350 - 10400 levels. As a pessimist, one should rather wait n watch for while. An ideal scenario would be a decent relief rally or a slide below Wednesday's low i.e. 10096 (whichever comes first). For the coming session, 10180 - 10127 would be seen as immediate support levels.

During the day, we witnessed perfect balancing act from HDFC Bank and Kotak bank as they came for a rescue after ICICI bank taking a solid knock right from the word go. Going forward, traders should focus on Pharma names along with selective Auto and Auto ancillary counters."

Source : Equity Bulls

Keywords