Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “In line with the massive rally in US bourses on Friday, our market opened higher to surpass the 10,300 mark in the initial trades...
“Looking at Friday’s close, no one would have expected such a gigantic bounce back. Some traders expected resumption of downtrend and others were looking for some relief rally; but not with such magnitude. In fact, we did not expect the bounce back move extending beyond the 10,400 mark…The beaten down heavyweight pocket ‘banking’, came back smartly and had shown tremendous resilience at lower levels. Looking at today’s smart bounce back, we may extend the relief rally towards 10,460- 10,500; but our directional view remains unchanged. We advise traders not to participate aggressively in this move and should rather lighten up longs at higher levels.
“For the coming session, 10,360-10,300 would be seen as immediate support levels. Today, during the second half, PSU banking stocks rebounded smartly. Since they are deeply oversold, traders are advised to book out existing shorts for a time being.”
Mustafa Nadeem, CEO, Epic Research, said: “The Nifty continued the upward momentum as short-term patterns suggested the bounce to be evident. Nifty’s pullback seemed to be swift in the last few days since the momentum on dips has been followed by buying. Bank Nifty added weight to the bulls with prices retracing back to 24,700 zones where it consolidated for a brief period.
“As this rally expands, we believe the resistances will be developed to near levels of 10,450-10,460. On the downside, supports are open towards 200 Days SMA at 10,150-10,200. A close above only 10,650 will trigger some kind of short covering while also calling in long side momentum players.”