“Global markets were cheerful in the morning and hence, the set up was ideal for us to have a head-start today. Index opened higher in line with SGX Nifty and maintained its position above the 10800 mark throughout the first half. After a small pause, the buying interest re-emerged during the penultimate hour to eventually conclude the session at the highest point of the day by adding nearly percent and a half to the bulls’ kitty.
Today was undoubtedly the best day so far of the new calendar year. Firstly, we had a good trended move throughout the day and importantly, we finally broke out from the recent congestion zone in the upward direction.
Technically speaking, the ‘Bullish Diamond’ pattern has now been activated and therefore, we expect the fresh leg of the rally to commence now. Unless there is some unfavorable development from the global markets, we expect the Nifty to head towards 10970 and then to test 11150. On the flipside, 10820 followed by 10777 are now likely to act as strong supports.
During the first half, the banking index looked a bit tentative; but finally some renewed buying was seen in some of the heavyweight banks to propel the rally in the latter half. Apart from this, there were so many individual pockets were buzzing today and hence, going ahead, we expect good amount of participation from the broader end of the spectrum as well.”