Expect further bounce back in midcap universe: Angel Broking

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

"On Oct 10, 2018, the markets opened with a decent upside gap despite mixed global cues and in fact, the momentum got accelerated right from the word go. Subsequently, a sustained buying was being witnessed throughout the session to eventually conclude the session with whopping gains over one and half a percent.

Technically speaking, index has been gyrating around its key support levels and since the overall market was so deeply oversold, a bounce back was very much on cards. Market set the platform in last two days by threatening traders to go long at lower levels ad hence, conditions became conducive to give such kind of sharp relief move. This is what we had anticipated in our previous article that market is setting itself up for such kind of move and hence, one should not remain short for a while. With today's gigantic move, index has closed convincingly above the 10400 mark and thereby unfolded further room towards 10540 - 10600 levels. On the downside, 10436 followed by 10390 would be seen as immediate supports for the forthcoming session.

At present, momentum traders are advised to focus on individual stocks which have corrected significantly and are now poised for further bounce back from their key supports. We had also highlighted about the 'Midcap' index which was gearing up for some sharp relief rally. This is exactly what we saw today and going ahead, we will not be surprised to see extension of this relief move in midcap basket."

IIFL Securities Ltd (acquirer) and India Infoline Finance Ltd (pledgee) have made announcement on acquisition of substantial stake in Ashapura Intimates Fashion Limited.

Source : Equity Bulls

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