Markets at new record high, v-shaped recovery in merely Nine months: Angel Broking

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

"Last week, the market started sensing Joe Biden's victory in the US presidential election and today's gap up open around record highs was clearly a cheerful reaction to the final verdict that came over the weekend. Post the initial opening, markets extended the lead marginally and then witnessed some profit booking for nearly a couple of hours. However, since the overall undertone is still so strong, this small intraday dip was bought into to drive the Nifty to a new high of 12474.05. With today's up move, Nifty has added another one and half a percent to the bulls' kitty.

Market continues its spectacular run and this recent rally from 11535 has its own unique characteristic. It sailed through smoothly in the midst of the uncertainty, such a huge event effortlessly and this is very seldom to experience. Fortunately, we stood firmly and were hopeful around recent swing lows and in fact as we progressed last week, things were pretty clear in the latter half that the market is not going to stop soon. On Thursday, we had a breakout with a 'Breakaway Gap' which is followed by two back to back gaps, which can be termed as 'Runaway Gaps'. Such development happens in an extremely optimistic environment and hence, the rally is likely to continue first towards 12550 - 12700. On the flip side, the immediate support shifts higher around 11367 - 11280, which is today's upward gap area.

Today too, the banking space had a lion share in the rally and the way it's poised, it is still a long way to go. Almost all sectors are participating, which is a sign of a healthy rally. Importantly, the midcap index, which had confirmed a fabulous breakout last week, still looks quite promising and hence, even if index heavyweights consolidate in coming days, the broader market is likely to continue its buzz. One should keep focusing on such potential candidates, especially from the cash segment."

Source : Equity Bulls

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