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Below are Views On Broader markets witness some profit booking, be watchful By Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)

“The Nifty index opened on a positive note and surpassed the 14750 mark for the first time. It consolidated at higher level for most part of the session, however, the indices corrected sharply after 2 pm and Nifty ended the day tad below 14600.

During most part of the day, the indices were trading on a positive note and the Nifty even marked a high over 14750. However, the weekly expiry session resulted in some serious profit booking in the later half and both Nifty as well as the Bank Nifty not only wiped out its morning gains, but ended the session in the red. On the daily chart of Nifty, we can observe a negative divergence between price and the RSI oscillator as the price has surpassed the recent swing high and has made a ‘Higher High’, but the RSI has made a ‘Lower High’ in the same time frame. This divergence, and the profit booking that we saw in the broader markets in the later half today indicates that although the trend is positive, one should look out to book profits on the long positions and avoid aggressive positions for time being. The Banking index has consolidated within a range of 32860-31690 in last few sessions, and a breakout beyond this range could then lead to a directional move in this space which could drive the momentum in Nifty as well.  

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