Massive volatility haunts traders: Angel Broking

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

"Our markets started the session with a gap up opening, courtesy to the banking stocks which continued with its positive momentum. The midcaps too joined the upmove and thus, it looked that the index will take out the 12000 mark easily today to kick start the next leg of upmove. However, in the later half, the index suddenly nosedived and within no time, Nifty sneaked below 11800 from 12000 mark. But it was not over yet, the index showed a V-shaped recovery in the last hour and ended this highly volatile session well above 11900.

Till noon, it seemed that the index is finally geared to resume its uptrend above 12000 as banking pack as well as the broader markets were going up quite well. However, many times we have seen that when things look quite easy, market tends to give some reality check and that is what we witnessed during the day. The intraday volatility mostly sidelined the weaker hands and the bulls continued to dominate at the close. Due to the sharp recovery in the concluding hour, 11800-11775 continues to be an important support, and till this is defended, one should continue to maintain a positive stance. On the higher side, 12000-12025 certainly has attracted some profit booking recently but once we see a breakout breakout above the same, the broader markets would then provide good trading opportunities.

At this juncture, it is advisable to keep a track on the above mentioned levels. While the banking space continued its momentum, some other sectors such as Real Estate and Cement too witnessed good buying interest. Traders are advised to find look for opportunities in such sectors with good momentum for better returns."

Source : Equity Bulls

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