Technical & Derivatives Report - October 29, 2019: Angel Broking

By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"A truncated one-hour 'Muhurat' trading session ended on Sunday on a positive note with gains of 0.37% at 11627.

During the last week, the benchmark index did nothing as we witnessed Nifty vacillating in merely 150 - 180 points to conclude the week with marginal cuts. As per our recent 'Time Retracement' analysis, Nifty has reversed exactly in the September month and is now well above recent lows. But the million dollar question remains the same, are we going to see sustained rally from hereon or not? Honestly, this would probably be the toughest question to answer. But, we are still hopeful as we can see bulls trying to flex their muscles a bit and hence, expect some good days to come for our market. On the daily chart, we can see a breakout happening during last week from an 'Inverse Head and Shoulders' pattern. Although the follow up move is lacking, one should remain upbeat as long as recent swing low of 11090 is intact. Meanwhile, 11450 - 11350 can be seen as immediate supports and on the higher side, we could see rally extending towards 11850 - 11900 first or may be beyond 12000 once Nifty manages to sustain above 11700. The Banking index has been a laggard of late, which needs to step up and we expect it to happen soon.

Traders/ Investors are advised to keep following 'Buy on declines' strategy and should focus on apt candidates which are gearing up for decent moves going ahead. We hope for the new SAMVAT to bring back lot of positivity in the market and by next Diwali, markets should be at much elevated levels with broad based rallies from hereon."

Source : Equity Bulls

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