IGI Logo

Below the "Market Wrap-Up" by Mr. Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One Ltd.

                                             Bulls regained strength; Nifty reclaimed 19500

The buoyancy in Indian equities was quite evident amidst the favorable global cues, as the benchmark index soared above 19500 at the opening bell. However, the bulls refrained from capitalizing on the head-start as Nifty was at the crucial pivotal resistance zone and patiently waited for a dip. And as soon as a modest dip was seen, bulls latched on to the opportunity and made a strong recovery to reclaim their presence. Amidst the choppy yet joyous day of trade, the Nifty50 index concluded the session on a confident note, above 19500, procuring 0.48 percent at the start of the new week.

Technically, the market has shown its intent and it would be just a matter of time before the benchmark would come out from the broader consolidation zone to regain a strong momentum. The index has finally surpassed the 20 DEMA on the daily time frame, adding to the bullish undertone and is likely to head towards the bearish gap in the comparable period. As far as levels are concerned, 19400 is expected to cushion any upcoming blips, while the sacrosanct support lies around 19300-19250 zone. On the flip side, the immediate resistance is placed around 19600, followed by the bearish gap of 19680-19700. Meanwhile, in the last two trading sessions, an intense bout of short covering, followed by long addition could be seen. As we proceed, the undertone seems to favor the bulls, while buying on the decline should be the apt strategy in the coming period. Also, sectoral rotation is evident and one should focus on the thematic movers along with the Mid and small-cap spaces to have an outperformance.

Above views are of the author and not of the website kindly read disclaimer