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Below is Quote on the Weekly Market Wrap Up - Hint of profit booking at all time high by Mr. Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

After an extended weekend, markets opened on a flat note on Monday. During the first couple of sessions, we witnessed some consolidation with Nifty gradually moving towards 17400. However, the remaining part of the week panned out so well for the bulls as we saw Nifty resuming its upward trajectory to register new highs every day by a fair margin. On Friday, the positive momentum was carried over to even almost reach the new milestone of 17800. Unfortunately, it could not keep up with the same momentum as we witnessed a decent profit booking after marking a new high of 17792.95. Eventually the week ended tad below the 17600 mark by adding more than a percent to the previous weekly close.

Since last few days, Nifty was trapped in a small range and finally it managed to find some momentum. The trend is extremely strong but honestly, the current move is not giving us comfort at all. We reiterate that when things start to look hunky dory and there are no signs of correction, market surprises. Yes, it’s difficult to predict the precise time, but it’s always better to be safe than sorry. As of now, we are not advising to short but at least one can choose to keep booking profits on a regular interval and stay light on positions. Friday’s sharp correction from higher levels is clearly an indication of this and hence, we continue with our cautious stance. As far as levels are concerned, 17700 – 17800 are to be seen as immediate hurdles; whereas on the flipside, 17450 – 17250 should be treated as key supports. The first sign of real weakness would come only if we start sliding below the lower range.

The banking space had a lion share in last three days’ rally as we saw BANKNIFTY coming out of its long slumber phase to post fresh record high. In fact, on Friday as well, the broader market was sulking after the initial up move; but banking index managed to close in the green. Going ahead, all eyes would be on this heavyweight basket, because if Nifty has to move towards 18000, this space needs to continue its momentum. In addition, the broader end of the spectrum had a fabulous run throughout the week but we saw some decent profit booking in this space as well on the last day, which does not bode well. Hence, we remain a bit sceptical and we expect the picture to get clear in the coming week itself.

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