Market Commentary

Technical & Derivatives Report - 31st August 2020: Angel Broking



Posted On : 2020-08-31 22:38:06( TIMEZONE : IST )

Technical & Derivatives Report - 31st August 2020: Angel Broking

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

"The expiry session was quite boring for our benchmark; but our markets started with a bang on Friday above the 11600 mark, owing to extremely positive cues from the Dow futures early morning. In first couple of hours, the Nifty hastened towards the 11700 mark; but cooled off a bit in the latter half to conclude tad below 11650.

The on-going rally across the globe is just extraordinary and we are not at all falling behind. Although we are not actively participating in index specific trades since last a week (After 11350-11400) or so, the focus remained on individual stocks. Yes but at the same time, we are advocating booking timely profits on trades as well and we would continue to do so. After a certain time, it's always better to let go some move and focus on money management. As far as levels are concerned, 11700-11750 remains to be an immediate hurdle; whereas on the flipside, 11600 followed by 11540 would be seen as key support levels. It may sound a bit repetitive but since we have approached yet another cluster of resistances, we continue to advise some caution at higher levels, rather better to take one step at a time and keep a close eye on key levels.

Since last few days, the banking space started to outperform and single handedly, the up move was propelled by the banking stocks. In fact, the Bank Nifty witnessed a stellar intraday move on Friday and thereby marking whopping 10% gains during the week. Apart from this, there was a decent stock specific action throughout the day, but the broader market slightly took a back sit."

Source : Equity Bulls

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