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Below is Quote on Daily Market Wrap Up By Mr. Rajesh Bhosale,Technical Analyst, Angel One Ltd

Our markets had a splendid start for the week owing to favorable developments in US markets over the weekend. However, after the initial strong opening, there wasn't much significant movement, and prices fluctuated within a range of 50-60 points throughout the day. The overall sentiment remained bullish, and eventually, the Nifty index gained more than half a percent to reclaim the 18600 mark.

On Friday, prices broke above the recent congestion zone, as we mentioned in our previous outlook, indicating that the immediate breakout momentum could drive the Nifty towards the 18600-18700 range. In line with this expectation, the week has started on a strong note, and it's worth noting that the Bank Nifty has now entered uncharted territory after a long-awaited period. We anticipate that the Nifty index will also follow suit and test the all-time high levels of 18887.60 and potentially go even higher in the near future. However, the momentum may not be as swift due to the recent sharp rise in prices, which has led to short-term indicators entering the overbought zone and subdued intraday movements. Given this situation, it would be prudent to take advantage of dips to enter long positions and take profits at higher levels. From a technical perspective, we believe that the previous resistance around 18450-18400 will now act as a support level, while the 18780-18900 range will serve as immediate resistance.

When analyzing the higher time frame charts, we find the Midcap Index more intriguing compared to the frontline index charts. Therefore, we reiterate our recommendation to focus on midcap stocks, as they are likely to offer better opportunities for outperformance in the near term.

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