IGI Logo

 "Weekly Market Wrap Up" by  Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

On Monday, our domestic markets started the week on a nervous note citing to sluggish global cues. However, it was more of a consolidation with mildly negative bias. The sacrosanct support around 18100 provided cushion at lower levels which was then followed by some modest recovery in the following sessions. The monthly expiry had its own plans as we saw bulls unleashing on Thursday to surpass 18450 with some authority. Although the following session did not have any traction in the index, Nifty managed to close above 18500 mark to clock highest ever weekly close. On a weekly basis, Nifty added more than a percent to the bulls’ kitty.

We have been quite vocal in all turbulent moves during this year and maintained a strong optimistic bias around key support zones. So undoubtedly when the bulls are in cruise control now, we continue to remain sanguine on the near-term outlook. Banking index and SENSEX have already entered an uncharted territory and it’s a matter of time, we would see Nifty following the same footsteps. As far as levels are concerned, 18600 and 18750 are the next levels to watch out for, above which the path towards next milestone of 19000 unfolds. The ‘Buy on decline’ strategy continues to pay rich dividend to market participants and hence, there is no harm on continuing the same. The immediate support zone is now visible in the vicinity of 18400 – 18300; whereas the actual base now shifts higher towards 18100. As long as Nifty manages to defend this territory, there is no reason to worry for.

Once the benchmark index Nifty clocks fresh record highs, apart from heavyweights, one should now keep a close eye on the broader end of the spectrum, which has been quiet for some time now. The way NIFTY MIDCAP 50 index is placed, we are likely to see some flamboyant moves in mid and small cap baskets. Traders are advised to continue with an optimistic approach and now, with other sectors chipping in, we expect a good broad-based buying in the forthcoming week.

Above views are of the author and not of the website kindly read disclaimer