Market extends gains post RBI policy, but hesitation continues around 14900 - Angel Broking

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

"Similar to the previous session, we started off slightly in the green and then there was some roller coaster move seen in the initial trades. The market stabilised after this small hiccup and then consolidated with a positive bias for a while. However, the momentum accelerated post the RBI monetary policy as lot of banking counters started rebounding sharply. In this process, the Nifty moved beyond the 14800 mark and enter a crucial resistance zone of 14850 - 14900. In the latter half, market cooled off a bit to conclude the session tad above 14800 by adding another nine tenths of a percent gains to the bulls' kitty.

Today's up move was mainly propelled by the banking space and we have been mentioning since last couple of days how the BANKNIFTY is placed at a crucial support. If it has to recover, this is the best place from where it can. It was a good day of trade for banking space but one day rally is not sufficient to confirm this as a complete trend reversal. So we need to have some sort of follow up buying in order to regain the strength for the banking space as well as the benchmark. As far as Nifty is concerned, it has now reached a crucial resistance zone of 14850 - 14900 and it's been 12 trading sessions, it is unable to surpass it despite making multiple attempts.

Hence, it's important to see how things pan out in the coming session. If Nifty manages to break and sustain above 14900, then we can see the overall sentiments lifting in the market. Until then it would be prudent to stay light and avoid aggressive bets overnight, especially in the F&O space. On the downside, 14750 followed by 14650 to be seen as intraday supports. The coming session may turn out to be interesting one as it probably would decide the near term direction for the market. Traders ae advised to focus on stock specific moves and trade with proper exit strategy."

Source : Equity Bulls

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