Banking became the charioteer in today's late upsurge: Angel Broking

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

"We had a gap down opening to kick off the new trading week after Friday's volatile session. During the first half, the broader market remained under; however, the latter half turned out to be an excellent one for the bulls. The market breadth improved tremendously and in the process, Nifty managed to surpass the 10900 mark on a closing basis. The heavyweight banking space which has been underperforming since last couple of days became the charioteer of this splendid recovery.

We believe that the stage is very much set for our benchmark index to go beyond recent hurdles. Last two days up move has laid the foundation and further impetus may probably be provided by the RBI monetary policy scheduled this week. As far as levels are concerned, Friday's low of 10800 played a sheet anchor role and going ahead, 10987 is not too far now. Traders are advised to trade with a positive bias and should follow strict stop losses below 10800 for existing longs. A move beyond 10987 would unfold next leg of the rally and in this scenario; lot of recent beaten counters would see sharp short covering moves. Do watch out for all these possibilities and should position accordingly.

'Reliance Industries' continues with its dream run along with so many quality midcap counters. However, all of a sudden, when market breadth started improving, most of the 'Pharmaceutical' stocks took a complete nosedive. Apart from this, the entire 'ADAG' pack plunged severely to worsen their multi-year underperformance. One should avoid any kind of bottom fishing in such serial wealth destructors."

Source : Equity Bulls

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