Please find below the Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
“We had a gap up opening today despite SGX was indicating a flat start. In the initial hour, Nifty reached yet another milestone of 15900; courtesy to banking space. During the remaining part of the day, Nifty remained in a slender range by maintaining its positive posture. Due to minor profit taking towards the end, Nifty ended around the mid-range by adding nearly four tenths of a percent to the previous close.
The market has been reaching new milestones almost every alternative day as one or the other heavyweight space keeps propelling it higher. Today it was clearly the banking space who witnessed some sheer outperformance. But looking at the last few day’s price action, if index continues to move higher, it would certainly be a slow and steady in nature. The daily range would widen only if we see some kind of profit taking on any specific day. As far as levels are concerned, we are at a kissing distance from the magical figure of 16000 and hence it’s merely a formality now.
At the current juncture, we would advise momentum traders not too get complacent and keep booking profit on existing positions. Price-wise there is no weakness as such in the market but looking from a risk management point of view, it’s advisable to stay light and avoid taking leveraged positions (especially overnight). The immediate supports are now placed at 15800 – 15700 – 15600. The first sign of real weakness would come only after sustaining below 15600.”
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