Market Wrap for 29th June, ’16: Nifty rallies to cover gap, heads for 8250!

Nifty rallied today, closing 75 points higher and covering the Brexit gap down formed on Friday. The next resistance is at the level of 8250, whereas the previous resistance of 8160 has now turned into support , owing to the principle of polarity.

The Nifty IT index also rallied today and so did the Nifty Realty index and the Midcap index, utperforming the Nifty 50 and Nifty bank indices.

There is an indication of weakness looming in the chart of Nifty, and the level of 8250 looks the point of upside exhaustion for the short term.

In the Nifty Realty stocks also, like DLF, unitech, Indiabulls real estate, there is little upside left, maybe 4-5% more, but after that, some correction is not only expected but also healthy.

The gainers and losers of the day are as follows:

INTERNATIONAL INDICES

The US and European indices have been rallying post the Brexit result. Even the Japan economy seems to have stabilized after the uncertainity passing. The Indian and Chinese indices appear to be acting on their own again, independent of the international picture.

CHART OF THE DAY

Britannia poses good upside potential on the chart. It have given a very strong bounce back from the level of 2500 and it is expected to head higher. How much further is a question to be determined by the RSI in my opinion. Quick in approaching the level of 60, if Britannia breaches the level of 60 then we may expected the stock to achieve the broader target of 3000, otherwise the conservative level of 288 stand open on the chart.