Stellar recovery despite turbulence in the US markets: Angel Broking

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

"What a spectacular trading day it was for our markets. Initially, we saw index starting the day marginally lower and then extending the weakness to sneak below the 10550 mark. However, from the very next hour, there was strong buying witnessed at lower levels which aggravated post the midsession to clock handsome gains of over six tenths of a percent to reclaim the 10700 mark with some authority.

There couldn't have been the better gift traders' would have expected during the Christmas celebrations. We not only managed to recover from the low; but also managed to reclaim key support level of 10700. Technically speaking, due to today's recovery, we can see a 'Piercing Line' pattern on daily chart. It is considered a bullish reversal and hence, going ahead, any decline should be used as a buying opportunity. In fact, we will not be surprised to see Nifty jumping back to 10880 - 10920 in next couple of days. On the downside, 10680 - 10640 are seen as immediate support levels.

If we look at the banking index, we saw stellar move in Bank Nifty, which went on to form 'Bullish Engulfing' as well as 'Perfect Upward Bar Reversal' patterns on daily chart, that too precisely at 50% retracement of the recent up move and around the pullback zone of 'Downward Sloping Trend Line'. Going ahead, we expect banking basket to remain a major driver in the possible rally. Also, the 'Midcap' index showed encouraging signs, which we believe may provide better opportunities in the broader market."

Source : Equity Bulls

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