Sheer outperformance as compared to the global peers: Angel Broking

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

"For the second straight session Dow Jones had more than 500 points drop to close around the lowest point of the current calendar year. This sell off was triggered with the fear of fed announcing rate hike for the last time this year. This had a rub off effect on rest of the Asian peers and so as at the opening in our market. However, we must appreciate the fact that our markets are showing tremendous resilience and hence, we did not have the major damage. In fact, post the sluggish first half, we saw strong buying emerging at lower levels due to which index shaved off all losses and eventually went on to close above the 10900 mark with nominal gains.

Clearly, in last few days, our markets have decoupled from its global peers and today's price action was the perfect example of it. There was massive buying seen across the board in the latter half, which was led by the heavyweight pocket 'banking'. The banking index went on to surpass its recent swing high with an authority and hence, it's a matter of time now, we would see even Nifty surpassing its recent swing of 10941.20. This is what we had stated in our previous article and going ahead, we will not be surprised to see Nifty testing 11000 and even surpassing it over the next few days. Thus, we continue to remain upbeat and advise using dips to go long with a momentum perspective. On the downside, 10800 has now become a sheet anchor and till the time Nifty remains above it, we are likely to extend this rally.

The banking index has moved today very much on expected lines and the midcap index too is now on the verge of a breakout. We reiterate that our markets are likely to witness a 'Santa Rally' in coming days. Hence, traders should focus on individual stocks, which are likely to provide better trading opportunities."

Source : Equity Bulls

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