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Below is Quote on Market Wrap Up 20 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

                        Bulls dominated on weekly expiry, Nifty barely missed the 20K mark

On the weekly expiry day, the benchmark index started on a flat note and followed a pattern similar to the previous session, witnessing profit booking in the first hour. However, the bulls viewed this as an opportunity and launched a strong buying spree throughout the session, nearly reaching the 20000 level. Ultimately, prices concluded with a 0.74% gain, just below the 20000 mark.

The bulls have been speeding ahead rapidly, achieving a remarkable rally of around 1000 points in just 15 trading sessions, moving from 19000 to the nearly magical 20000 mark. While market participants wait for a dip or consolidation, the bulls remain firmly in control, indicative of a strong, ongoing bull trend. The indicators have been in the overbought zone for some time, reflecting its underlying strength. Going ahead, we don't want to sound pessimist, however, traders should be cautious not to become complacent and are encouraged to take profits at higher levels. From a technical standpoint, there are no signs of weakness, but it's crucial to remain vigilant as markets have a tendency to surprise participants off guard. It would be wise to wait for some consolidation or profit booking before entering long positions as the market is in a super bull trend. The golden retracement target for the Nifty is around 20100 – 20200, posing an immediate obstacle, while with the recent vertical move, the immediate support is placed around the 19750 – 19650 zone. Traders should closely monitor these levels and consider playing within this range.

Considering the elevated levels at which most participants have already joined the party, selecting the right theme for a momentum move could be challenging. Traders are advised to keep their positions light and exercise caution in their stock approach, being selective in their choices.