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Daily Market Wrap Up By Mr. Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.

Globally, things were much improved as we stepped into this week’s trading action on Monday. We had a pleasant start which was then followed by a move towards the 16000 mark on the following day. However, the bears were not ready to give up easily, and hence, we witnessed a sharp profit booking on the same day to erase all gains. On Wednesday, we had a similar start to hasten towards 16000; but this time it was there to stay. In fact, on weekly expiry day, markets had a decent gap up opening to surpass the sturdy wall of 16000 with some authority. Although there was not much intraday action seen in key indices thereafter, the Nifty extended its gains on Friday to reclaim the 16200 mark by adding nearly 3% to the bulls’ kitty.

Technically speaking, the short-term structure seems bullish as the index managed to reclaim the psychological level convincingly. Also, the way the broader market has behaved towards the fag end of the week certainly augurs well for the bulls. Now since we are relatively in a safer terrain, 16000 – 15900 should now be seen as a strong support zone for the coming week; whereas on the flip side, 16350 – 16430 are the next levels to watch out for as the higher range coincides with the ’89-EMA’ on the daily time frame chart. If the global market supports then we may even go beyond 16430, which will trigger the next leg of the rally for our market participants. Until then although we remain sanguine, by no means one should become complacent here. It’s better to adopt a ‘One step at a time’ strategy and should look to book timely profits wherever it’s necessary as far as momentum trades are concerned.

This week lot of thematic moves played out well and some may continue to do so in the forthcoming week. But now one needs to be very selective and should also focus on the broader market, which is likely to provide better trading opportunities as compared to key indices.

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