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Below is quote on Market Wrap Up - Heavyweights join the party, sends Nifty beyond 16500 by Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

The August month started with a bang last week as we not only managed to reach the much awaited milestone of 16000 but also moved beyond it convincingly. This was followed by a quiet start this week. In fact, during the first three trading sessions, our markets consolidated with some hint of profit booking at lower levels. Fortunately, the mighty bulls provided cushion at the lower range of 16200 – 16170 for the Nifty. On the weekly expiry day, we had a gradual up move to register new all-time high at 16375 which was then followed by a spectacular move in few heavyweights to reach the new milestone of 16500 to conclude the week on a cheerful note.

Market looked a bit tentative in the first half this week, especially the broader market as we witnessed a healthy correction in NIFTY MIDCAP 50 index. At one point, it was on the cusp of violating recent swing lows but fortunately it got its mojo back slightly and managed to recover fair bit of ground towards the end. Going ahead, things are going to get tougher because from hereon we are likely to see lot sector churning every now and then. Nifty has reached 16500 without the participation of banking space, which is hard to believe. So it would be interesting to see how things pan out going ahead. Also, it would be unfair to expect the similar pace from Nifty to reach new millstones. Since there is no sign of weakness, we are not advising to go against the trend but we reiterate when things start to look hunky dory everywhere, wise traders chose to take some money off the table. We second this as we advise continuing with one step at a time approach and keep booking timely profits in the rally.

As far as levels are concerned, the sacrosanct support is placed at 16200 – 16170 before which 16400 – 16300 are to be considered as immediate levels. On the upside, it’s hard to project any level as we have entered an uncharted territory. Still, every 100 points rally from hereon should be treated as the upside range.

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