Nifty reclaimed 10800 amid broader market participation: Angel Broking

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

"Last two days have been excellent for our markets after recent depressing mode. Yesterday's strong recovery was followed by a flat start; however post the initial consolidation, index once again continued its northward trajectory to conclude the session with half a percent gains. Index wise, today's move looked restricted; but what encourages us is the participation from the broader end of the spectrum that had a stellar relief move.

Due to previous day's recovery, an extended bounce back was very much on cards today and in-line with this, index eventually managed to reclaim the 10800 mark. Now going ahead, as long as 10580 remains intact, the bulls have nothing to worry for and in fact, we may probably see further extension of the relief move. For the coming session, 10820 - 10860 are the levels to watch out for; whereas on the lower side, 10769 followed by 10721 are likely to act as support levels. Clearly, in last couple of days, the 'Positive divergence' occurred in RSI on hourly chart has proved its significance. And now looking at the 'Morning star' pattern on daily chart, recent corrective mode is likely to be arrested for a while.

Today, we saw good traction in the broader market and since it generally provides a healthy up move, we advise against forming fresh shorts in the market. Although, the banking index remained quiet, other pockets contributed heavily. At present, it's advisable to focus on individual stocks, which are showing tremendous outperformance after recent hammering."

Source : Equity Bulls

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