Market nosedives post Reliance AGM: Angel Broking

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

"Yesterday, we had a painful session after few weeks of consistent rally. But things were completely different today morning, due to massive overnight rally in US bourses. Our markets opened with a decent bump up which was then followed by an extension of the rally to go beyond the 10800 mark. However, post the Reliance AGM, markets took a complete nosedive due to heavy profit taking in RIL from record highs. Within no time, whopping gains of 200 points on Nifty just disappeared to conclude the day with negligible gain.

In the morning, the initial up move was mainly on the back of global peers but from there the gains extended due to spectacular move in IT giant, INFY followed by peers. The RIL was also contributing heavily in this; but post its AGM in latter half, the stock prices fell like a pack of cards, which turned out to be a spoilsport. If we look at the hourly chart of Nifty, today's price activity was a replica of what happened in US markets on Monday. But we must not dishearten by this because if our markets are following this pattern, then US markets have regained strength in last couple of days and are poised for a good move. Thus we still remain hopeful as long as Nifty remains above 10550 on a sustainable basis.

A move below this would certainly apply immediate brakes on the recent rally to see some correction in the market. Till then 10725-10850 can again be retested."

Source : Equity Bulls

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