Good day for benchmark, courtesy to big boy Reliance: Angel Broking

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

"Last week's range bound movement was followed by a sluggish start to the new trading week, in the absence of any trigger on the domestic as well as global front. During the initial trade, we saw some nervous trades, but immediately after 15 minutes, a sudden spurt seen in the benchmark index to surpass previous week's high. However, during the remaining part of the day, index consolidated in a small range to conclude the session by adding half a percent to the bulls' kitty.

As far as Nifty is concerned, today's session was quite encouraging. The index managed to surpass last four weeks high, which was acting as a sturdy wall of late. However, the market breadth remained weak throughout the day, which was quite surprising to us. Only handful of heavyweights kept buzzing and 'Reliance Industries' was clearly the major driver today as it single handedly contributed nearly 80% to Nifty gains. Hence, going ahead, if Nifty has to maintain this lead; other constituents should also participate in order to have a healthy rally. As far as levels are concerned, Nifty has reached our first target of 10970 and going ahead, if other heavyweights starts chipping in, a move towards 11100 - 11200 cannot be ruled out. On the flipside, 10928 - 10885 would now be seen as a key support zone.

Recently, we have been witnessing some underperformance from the banking conglomerates. Going forward, banking index plays a vital role if benchmark has to stay at higher levels or if has to move ahead."

Source : Equity Bulls

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