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Below is quote on Market continues with its merry run by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

The global picture was good today morning and as a result, our markets started the week with yet another upside gap. The Nifty reached its next milestone of 18500 in early trades and thereafter we did not see any major price action in the absence of a follow up buying. With some mild profit taking towards the end, the Nifty managed to close tad below the 18500 mark.

There has been no respite in the market as the relentless run continues for the bulls. We have witnessed three back to back upside gaps in last three sessions, which generally is a sign of strength till the time previous day’s gap is not filled. So for traders, it would be important to keep a track of this development. Historically its observed that whenever the trend is strong, we tend to see such ‘Runaway Gaps’ and whenever they immediately gets filled, it’s a first caveat to lighten up longs. Till then one should keep riding this move but the pragmatic approach would be to focus on stocks/ individual themes rather than index. Since we are in an uncharted territory, we reiterate every 100 points round figure is to be considered as next junction; whereas on the lower side, today’s gap area of 18445 – 18350 would be seen as crucial support zone.

Today although the stock specific action continued in the market, there were pockets that witnessed some profit booking as well and hence, one needs to be very selective when it comes to picking up the trade.

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