Nifty ends at highest closing in seven months, HDFC twins take charge - Angel Broking

Derivatives Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):

"Positive cues from the global markets led to another gap up opening for Nifty today. Post the gap up, the index consolidated in a range for most part of the session and then it rallied higher in the last hour of the session to end at its highest close in last seven months.

The bulls are firmly in control over the indices as the Nifty continued its upmove and surpassed the swing high of 11618. While it was IT space who led the upmove yesterday; today the heavyweights HDFC twins took the charge to propel the index above its resistance. Honestly, this sharp upmove has surprised us to an extent and as we did not expected such a sharp surge, we have been selective and have not participated aggressively in this move. Now, although the oscillator readings on the hourly charts are in overbought zone, the momentum remains strong and hence, traders are advised to take a sector/stock specific approach and look for trading opportunities. Also, the earnings season for the July-September quarter kicks of now with the IT giant TCS declaring its numbers tomorrow. This too will lead to some stock specific momentum. The immediate support for the Nifty are now placed around 11560 and 11520 whereas resistances is seen in the range of 11750-11800."

Source : Equity Bulls

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