11000 very much in sight now: Angel Broking
Despite US Markets having a terrible session on Friday, our markets started the trading week on a cheerful note. This was followed by some consolidation; but once again good buying emerged in the penultimate hour to extend this lead to conclude the session tad below the 10900with decent gains of nearly eight tenths of a percent. As far as index constituents are concerned, only handful of stocks remained slightly under pressure during the day.
Since last Tuesday, our markets seemed to be in a ‘Santa Rally’ mode. We completely shrugged off extremely weak session in US markets on Friday and went on to open with a decent upside gap well above the recent hurdle of 10840. In technical terms, when a major resistance is broken with a gap is known as a ‘Breakaway Gap’ and is considered as extremely bullish signal. Going by the gap theory, a new leg of the rally in upward direction should unfold now and today’s gap (10844 to 10815) would now be seen as a strong support zone. On the upside, the immediate hurdle is around 10940 and as mentioned in the previous report, we expect this to get surpassed and Nifty then march towards the 11000 mark and above. Hence, one should keep trading with a positive bias as long as Nifty remains above the crucial swing low of 10749.
The banking index has proved its worth today and is now on the verge of a breakout from the recent swing high. Apart from this, midcap universe remains to be the promising one and is now on the cusp of a breakout to trigger the ‘Santa Rally’ in mid and small cap pockets.”