Stellar move in banks rescues Nifty from Reliance sell off: Angel Broking

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

"Our market started the week marginally positive around the 11700 mark. However, Nifty corrected from the opening ticks itself due to sell-off seen in the heavyweight Reliance and almost tested the 11550 support. But it recovered gradually led by the banking space and ended the day with marginal gains at 11670.

The weekend gone by had some important results of index heavyweight stocks such as Reliance Industries and ICICI Bank. We witnessed a gap up opening in ICICI Bank which set the tone for the banking stocks and one after another most of the stocks from this sector witnessed good buying momentum. As a result, the Bank Nifty index rallied higher and it was one of the best days for this index as it posted gains of almost 1000 points at close. However, it was an unusual day for Reliance Industries which witnessed selling pressure right from the opening ticks and it was one of the worst days in recent times for this heavyweight as it corrected by almost 9 percent. The tug-of-war between Reliance and Banking stocks restricted the Nifty from any directional move and hence, it ended with marginal gains. Now if we look at the last three sessions, Nifty has oscillated within a broad range wherein 11750 has become the resistance and 11550-11500 a sacrosanct support. The event of U.S. elections could lead to some volatility in the global markets and thus, our markets too seem to be indecisive at the moment. But, a move beyond the above mentioned range could then lead to a directional move and hence, traders should be watchful on the above mentioned levels.

Next couple of sessions would be very crucial to determine the near term trend for the markets. As far as the support of 11500-11550 is intact, we remain hopeful of a resumption of upmove. However, traders are advised to avoid aggressive trades till there's a breakout above 11750. Sectorial themes are providing good opportunities for day traders and hence, traders are advised to look for such stock/sector specific opportunities."

Source : Equity Bulls

Keywords