Nifty reclaimed 10300; courtesy to tail end buying PSU banks: Angel Broking

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

"Today's huge gap up especially after yesterday's massive intraday correction was certainly a surprise for many traders and in fact, such moves always caught momentum traders on the wrong foot. The way major global indices (Dow Jones and Hang Seng) futures were trading with deep cuts, who would have expected such opening with a gap. But, today it was only the opening, markets traded with sustained buying to clock handsome gains above the 10300 mark.

If we refer to previous article, Yesterday's sharp panic sell off didn't give us comfort and looking at few index heavyweight constituents, we anticipated this fall as a weak attempt. And hence despite today's velocity was a surprise, the relief rally was very much in line with expectations. Now with today's strong up move, Nifty has confirmed a breakout from 'Falling Channel'. This calls for extension of this move towards 10360 - 10400 levels. On the flipside, 10275-10225 would now act as immediate support zone.

Yesterday good tail end exuberance in PSU banking was certainly an eye catching move. Hence, traders should watch out for this space as we expect continuation of this optimism in next couple of days."

Source : Equity Bulls

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