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Below is Quote on Market Wrap Up 17 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

                                          Nifty extends gains on smart buying in heavyweights

After a strong close last Friday, Nifty started this week on a positive note and maintained a positive stature throughout the day. The momentum remained strong, thanks to smart buying in heavyweights, particularly Reliance which was followed by the Banking sector. Nifty closed above 19700 with a 0.75% gain, largely supported by robust buying in the final hour.

The 'Flag' breakout on the daily chart last Friday had a positive impact on today's session, with bullish sentiment expanding. The catalyst for this movement was the buying spree in the banking sector, which had been sluggish for the past few weeks. Also, with broad-based buying and positive momentum, the rally is expected to continue, possibly challenging the psychological level of 20000 in the near term with immediate resistance around 19850 - 19900. Traders are advised to stay optimistic, avoid contra bets, and look for opportunities to enter long positions during intraday dips. Immediate support levels are likely to be around 19600, followed by the 'Flag' breakout levels at 19500.

Last week, the IT and Metal sectors were strong performers, contributing to positive market sentiments. However, this week, the focus appears to be shifting towards the Banking sector. Traders should take note of such thematic moves and concentrate on relevant stocks for potential outperforming opportunities.

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