Keep using declines, further legs to unfold: Angel Broking

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

"The merry days continues for our market after undergoing some stressful period of nearly five months. Unlike previous week, the intra-week action was not as smooth as it was; but as we generally say all is well that ends well. Index managed to reclaim the 11350 mark with an authority; bringing the smile back on lot of retail investors.

With a technical point of view, the rally began after breaking out from a 'Bullish Diamond' pattern on weekly chart during the mid-July. Since then a series of bullish price developments have been observed. Some would say markets are overbought but we do not want to be in this bandwagon as of now. The structure is still strong and if we meticulously observe, some of the previous laggards have started to participate like, ICICI Bank, Axis Bank and PSBs. In addition, we had opined about midcap index probably showing signs of forming a base. The anticipation has now turned into a confirmation and hence, we believe that there is still lot more to offer in days to come. Friday's strong rally is the perfect example why one should refrain shorting this market at this juncture, rather capitalize such declines to buy into.

As far as levels are concerned, it's a matter of time, we are likely to hasten towards 11430 - 11500 and since it's an uncharted territory, further legs will keep unfolding as we move forward. For the forthcoming week, 11290 followed by 11234 would be seen as immediate support. One notable observation to sum it up, during the week, lot of stocks from the cash segment started to show some life and is poised for decent moves. One can look to target such potential candidates which may offer better trading opportunities."

Source : Equity Bulls

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