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

The Indian equity markets had a shaky start, following the weakness among Asian peers. Subsequently, there was further profit booking, causing prices to drop below the 18500 level. However, the overall sentiment remained bullish as the broader markets kept buzzing. In the second half of the day, there was a decent recovery in the benchmark index, as prices eventually ended a tad below 18550 with a loss of around half a percent.

The month of May was favorable for the bulls’ camp. While the benchmark index gained more than 2.5% during the month, other key indices reached new highs, bringing joy to the traders’ fraternity. The Nifty index has in fact rallied more than 10% from its recent lows, with intermittent pauses or price corrections that were actually healthy for an upward trend. Yesterday, as well we witnessed a bout of profit booking within key indices but traders maintained a positive bias by focusing on opportunities outside the index. Several midcap stocks showed upward movement, leading to another session of outperformance for the Nifty Midcap 100 Index compared to the frontline index. We reiterate, to concentrate on stock-specific actions for potential outperformance.

Going ahead, with key global data points lined up and with indicators in the overbought zone, some consolidation may occur within the key indices. However, the approach should remain positive, considering any further dips as buying opportunities. From a levael perspective, the zone of 18450 – 18400 is a strong support area, while the immediate resistance is expected in the range of 18650 – 18730 levels. Traders should keep an eye on these levels and trade accordingly for the weekly expiry session.

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