“We started the day on a flat note in-line with other Asian peers. During the first half, index swayed on both sides with lot of volatility. However, in the second half, strong buying emerged at lower levels and thereafter, we had a steady up move to reclaim the 10800 on a closing basis.
We had stated in the previous article about index oscillating within the boundaries of a triangle pattern and we are very close to its apex point now. Generally, in such scenario, we tend to see breakout happening in either direction. Since, today’s up move was supported by heavyweight banking space, we will not be surprised to see index breaking out in the upward direction. For such development, a key level to watch out for would be 10850. A move beyond this would trigger sharp short covering move to test 10940 and beyond levels. On the flipside, 10733 would be seen as a key support in the forthcoming session.
Today, as mentioned, banking stocks were on a roll throughout the day. Apart from this so many high beta pockets kept buzzing and hence, one should focus on such potential candidates which may provide better trading opportunities.”