Action packed day ended with some hope of revival: Angel Broking
“One of the most keenly watched events, the ‘Union Budget’, is behind us now. Yesterday’s splendid rally was followed by an obvious gap up opening today. Index then consolidated ahead of the event commencement; but as the budget announcement reached its finishing point, there was a sudden gush being witnessed and within no time, Nifty hastened towards recent swing high of 10987.45. As expected, last couple of hours remained extremely volatile and in this process, Nifty eventually closed tad below the 10900 mark by adding nearly six tenths of a percent to the bulls’ kitty.
Recently, our markets had to undergo a stressful period and fortunately last two days have come up with some respite. With this, index eventually recoup its previous week’s losses and in the midst of an extremely volatile trade, has managed to close relatively in the safer zone. Yes, although, we are yet to surpass the sturdy wall of 11000, looking at the broader market participation today, we will not be surprised to see it happening in the forthcoming week. And since there are some hopes built in on the possible rate cut from the RBI in next week’s policy, the possibility of surpassing 11000 cannot be ruled out. However, having said that, today’s low of 10800 would now be seen as a crucial support. A sustainable move below this may give a dent to all the above mentioned possibilities.
There were bundle of pockets soared to a great extent today and hence, it’s advisable to focus on such propositions by following a proper exit strategy. ”