IGI Logo

Below is Quote on Market Wrap Up 07 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

During the major part of the week, our market experienced a positive trend following a bullish breakout from the previous week. On Monday, the Nifty benchmark Index opened significantly higher, setting the tone for the week as prices continued to climb and reached new milestones each day. However, on Friday, global market weakness led to the end of an eight-day winning streak, causing Nifty to erase around a percent gain from the top and finish the week with a modest gain of 0.74%, a tad above 19300.

After the long-awaited breakout last week, the bullish momentum remained strong at the beginning of the week, defying obstacles, and decoupling from global counterparts. However, profit-taking at higher levels on Friday and succumbing to global pressures resulted in a decline in prices, wiping out a significant portion of the weekly gains. The weekly chart shows a small bullish candle with a slightly larger upper shadow, indicating tentativeness at higher levels following the recent surge. Despite this, we believe the bull run is likely to continue, marking the start of a major upward movement. However, the momentum on the upside may not match the intensity of the past couple of weeks. Considering the overbought conditions, we may witness a period of consolidation in the coming week, during which dips could be seen as buying opportunities. On the other hand, it is advisable to secure profits at higher levels and avoid complacency until the indicators exit the overbought territory. In terms of support levels, the immediate support lies around 19200, where a bullish gap was left this week, while the major breakout levels around 19000-18900 serve as a strong foundation for our market. As the prices are currently in uncharted territory, it is challenging to identify resistance zones. However, the range of 19500-19600 appears to be an immediate hurdle for the anticipated consolidation.

Throughout the week, several themes exhibited significant strength, and it is crucial to focus on identifying such sectors that can potentially deliver remarkable movements in a range-bound market. Additionally, keeping an eye on global cues is important to monitor any positive developments after the recent weakness or if they exert downward pressure on our market in line with their own vulnerabilities.

Above views are of the author and not of the website kindly read disclaimer