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 Below are Views On Despite early hiccups, benchmark ends at new highs By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

Monday morning, the global screen was looking extremely terrible and in line with SGX Nifty, we started the week around the 17450 mark. Surpassingly, after the initial hiccup, we witnessed a v-shaped recovery not only to erase losses but also to trade in the green above 17600. However, it could not decouple itself from the global peers for a long time as the markets took a U-turn post the mid-session, to finally sneak below 17400 on a closing basis. The following session initially traded weak but thereafter the global markets stabilised so as ours. After entering a key support zone of 17350 – 17250, the Nifty reversed in the upward direction and then kept thrashing all intermediate hurdles one after another. In fact, due to decent rally in the latter half of the week, Nifty went on to register a new high convincingly below the 17900 mark

Our markets had a remarkable comeback in last four sessions as we not only managed to recover from lows but also went on to clock fresh highs. We have clearly outperformed the global peers because despite a relief move in last two days, they are still trading well below their highs. Honestly speaking, the recovery beyond 17600 has certainly surprised us but eventually market is superior. Ideally, after market surpassing previous highs, our cautious stance should have been negated; but there are a few time-wise projections as well as negative divergence in ‘RSI-Smoothened’ oscillator, clearly holding us back. Hence we would keep reassessing the situation closely for next few days. As far as levels are concerned, every 100 points psychological level from here would be seen as immediate resistance i.e. 17900 – 18000. On the flipside, 17700 – 17650 are to be seen as key supports.

We advise traders to continue with a stock specific approach but keep booking timely profits as well and also avoid carrying aggressive overnight bets. Meanwhile all eyes on global markets and on how banking index move ahead from here on which could probably decide the next path of action for markets.

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