Financial stocks propel late surge: Angel Broking

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

"Today, global cues were a bit subdued early in the morning and despite this, our markets opened lower and then extended losses as the day progressed. The weakness was mainly led by the IT counters, that were experiencing heavy profit taking after a recent relentless run. Then banking joined hands to drag the markets lower. But all of a sudden at the stroke of the penultimate hour, markets just took off and financials were the major charioteer to this late surge. Eventually, Nifty not only recouped losses but also ended well inside the positive territory.

In last couple of days, markets cooled off a bit after reaching the 12000 mark; but with today's sharp recovery, 11800 has now become a sacrosanct support. Nifty precisely attracted buyers in the support area of 11867 - 11800 and fortunately, we managed to participate in the sudden up move in the banking space. Now the way banking index is shaped up, there is a high possibility that we may see a convincing move beyond 12000 for Nifty tomorrow. As far as levels are concerned, 12050-12100 are the next levels to watch out for; whereas on the downside, 11900-11800 have become immediate supports.

Since last few days, we have been continuously mentioning how broader market is quiet and remained unmoved in the recent rally. But today, in the last hour surge, midcap index too participated well and a follow up in the coming session, would certainly bode well for the bulls."

Source : Equity Bulls

Keywords