Buying interest in heavyweights propels the index above 14800 : Angel Broking

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

"Post the extended weekend, our markets started the session on an optimistic note with a gap up above 14600 mark. The momentum continued throughout the day supported by participation from index heavyweights and Nifty ended the session around 14850, with gains of over a couple of percent.

The global markets traded with a positive bias which had a positive impact on our markets at opening. We then witnessed a good buying interest in the benchmark and some of the index heavyweights which propelled the market higher. If we look at the chart, we had seen a pullback from a 'Rising Trendline' support in Nifty during last week. A follow up buying today with a broad market participation is certainly an encouraging sign and hints at a probability of resumption of the broader uptrend. However, we are now at an important juncture in the index at 14875-14900 and 15050 which are resistances on short term charts. The index needs to surpass these with an authority which would then build a greater confidence going ahead. Hence, taking one step at a time and avoiding aggressive bets would be the advice for traders at these levels. A lot of sector/stock specific momentum could clearly be seen and hence, capitalizing on such ideas would be a better approach to ride this momentum. As far as index levels are concerned, 14700 would be seen as an immediate support while 14900 and 15050 are the resistances to watch out for.

A lot of sector specific movement was seen today wherein the IT, Pharma, Metals and FMCG pack saw good buying interest along with the heavyweights HDFC twins. Traders are advised to look for such thematic opportunities and trade with proper risk management."

Source : Equity Bulls

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