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Daily Market Wrap Up By Mr. Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

The positive global developments over the weekend led to a promising start to our domestic market. The benchmark index Nifty50 started the day with a decent gap-up and sustained at the higher grounds throughout the trading session. The buoyancy among the broader market boosted the overall sentiments across the participants resulting in a firm closure of our equity space. The Nifty concluded the session near the day’s high with a 1.43 percent gain, a tad below the 16300 level.

Technically, the index has shown a strong follow-up buying post the favorable weekly closure that could be seen as an encouraging sign for the bulls of D-street. On technical parameters, the 16000-sub zone has provided a strong demand, wherein the bulls gauged the opportunity to take control, which certainly construes an upbeat market. Also, the formation of higher highs – higher lows are evident now, as the index breached the previous swing high of 16275 odd levels and is set to march upwards. Meanwhile, any minor correction towards the 16100-16140 zone could be seen as a buying opportunity in the near term. On the contrary, the 16350-16430 zone is likely to act as the immediate resistance, above which the bulls would strengthen their stance.

Considering the recent price action and the respite in the global market, the undertone is likely to be in favor of the bulls. However, one should not be complacent with today’s gains and must stay abreast with global developments. Simultaneously, looking for opportunities outside the index is advisable, as we may also witness good traction in mid and small-cap counters.

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