Index is all set for new highs: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):

"Most of the Asian markets were trading with a positive bias in morning and in line with the global cues, our market started the week on a positive note. Right from the word go, the index witnessed a buying momentum and with participation from the broader markets, Nifty crept higher throughout the session to end with gains of over 150 points.

Recently, we have seen a consolidation phase in the Nifty index wherein the index had traded within the range of 11800-12050 in this calendar month. However, although the index was consolidating, there was sector rotation seen as the certain pockets witnessed buying momentum in this consolidation. Hence, we kept our view positive on the index and interpreted this consolidation as a time-wise correction within and uptrend. In today's session, broader markets witnessed positive momentum throughout the day and as a result, the index resumed its uptrend and is now few points away from its all-time high. The time-wise correction now seems to be over and hence, we expect the momentum to accelerate from hereon to take the indices to the uncharted territory. Infact, we will not be surprised if the markets show a gap up opening to register new highs and then continue its northward trajectory. The immediate target areas once the Nifty reaches new highs will be around 12180 followed by 12290, whereas the immediate supports will now be seen in 12000-11950 range.

Amongst sectoral indices, all the indices except Nifty Media ended in the green with the metal space outperforming the most. The Banking and the Pharma space too seems will be continuing its upmove and hence, traders are advised to trade with a positive bias and look for opportunities which could deliver good returns in near term."

Source : Equity Bulls

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