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Below are Views On Highest close for Nifty, but still 18000 remains untouched By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Nifty started the week on a positive note on Monday and witnessed some momentum to reclaim 17700 with an ease. On Tuesday, the global cues were a bit nervous, but still, we managed to shrug off the negativity and rallied higher post the opening to surpass the 17800 mark. However, one day ahead of the weekly expiry, our markets finally reacted to the global weakness. The index consolidated throughout the first half, but witnessed a sharp post midsession to end the day tad above 17600. The opening on the expiry day was absolutely a shocker for bears as the shaky global markets recovered overnight and remained firm thereafter. As a result, the Nifty continued its March towards the recent highs. 

The RBI governor announced its monetary policy on Friday and the outcome was very much in line with the general consensus. Markets did not look much excited as it turned out to be non-event. There was no follow up seen in key indices throughout the remaining part of the session. Eventually Nifty ended the week around the 17900 mark, which is the highest ever close for our markets. Considering the recent behaviour of the market, it is pretty clear that the bulls are not willing to let loose their firm grip so easily. But we reiterate it is that sort of phase of the market, which may not be easy to participate in. We are not at all convinced trading aggressively on the long side at this moment, yes there could be odd thematic moves that can be focused on but do not want to go all guns blazing at such elevated levels.

As far as levels are concerned, 17900 – 17950 remains to be a sturdy wall and on the flipside, 17600 has become a sacrosanct support now. The way we are following US markets of late; all eyes on them how they move going ahead. Also, as far as BANKNIFTY is concerned, nobody knows what it is up to. Clearly directionless and is flirting around key support as well as resistance levels. The IT heavyweight TCS is going to flag off the result season. Let’s see if any exciting outcome from this pushes Nifty beyond 18000 or not.

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