11700 becomes the sheet anchor for the bulls: Angel Broking

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

"Global markets had a terrible day last night and despite this, we managed to open flat as indicated by the SGX Nifty early in the morning. In the initial trade, Nifty dipped towards yesterday's low around the 11700 mark. However, unlike yesterday, the bulls looked very much comfortable around it today and latched on to this opportunity all guns blazing. As the day progressed, Nifty continued its upward trajectory, which then had a complete thrust in the last hour of the trade to recoup a major portion of yesterday's losses.

Since the last couple of months, our markets are experiencing in between hiccups, mostly imported from the global bourses and now as we move closer to the US presidential election, the volatility is rising a bit. Yesterday, we had a strong beating mainly on the back of rising coronavirus cases in major European countries. But similar to the recent trend, our markets just took it as a knee jerk reaction and immediately left it behind. Technically, we were quite firm on our stance and had mentioned that the optimism remains intact as long as the strong and crucial support zone of 11700 - 11660 is not violated. Today too we respected this sheet anchor and had a remarkable recovery by shrugging off global nervousness. For the coming session, the intraday support now comes around 11800 and on the higher side; 11925 - 11975 are the levels to watch out for.

Today, the rally was mainly propelled by the financial stocks and the way the banking index is positioned, a move towards 12000 (in Nifty) and beyond is likely to be led by the banking space. Do watch out for this and if we see this happening tomorrow, one can choose to pick stocks accordingly. Also, the midcap index which had a solid knock yesterday, has managed to recover a fair bit of ground. With reference to our weekly article, another couple of percent move from here on in the Nifty MIDCAP 50 index will confirm a huge breakout in it. Yesterday, bulls hoped for the recovery which came today and now, one should keep their fingers crossed not to have any negative development on the global front."

Source : Equity Bulls

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