Stocks rallied as if there is no tomorrow ahead of the budget: Angel Broking

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

"It was certainly an astounding day of trade for our markets. Who would have thought at the opening that the session is going to come with loads of surprises? In-line with SGX Nifty, we started marginally higher and then remained a bit sluggish in the initial hour. But post this; all of a sudden strong buying emerged in the market, which accelerated as the day progressed. Eventually, this spectacular day ended with whopping gains of 1.68% to bring back wider smile in traders' fraternity.

Recently, traders did not have any reason to cheer for; but today, barring the initial hour, participants must have enjoyed a spectacular ride today. And with Union budget slated on the following day, the kind of close we had, things started looking quite encouraging. For the day, we had mentioned if Nifty manages to stay beyond yesterday's high, we could see an extension towards 10810 - 10840 levels. Fortunately for us, this turned out to be a reality and there was complete gush seen throughout the broader market as if there is no tomorrow. For the coming session, we would advise staying light as we may see higher volatility on account of union budget. This hope rally must have come out of some positive expectation. If any announcement comes in-line with expectations, we may see this rally getting extended towards 10900 - 10940 or beyond also. On the flipside, 10740 followed by 10700 are likely to be seen as immediate supports.

As we all know, such events at times can be a bit deceptive and in case of any unfavorable outcome, traders need to be agile and should avoid taking undue risks."

Source : Equity Bulls

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