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Below is Quote on Market Wrap Up 27 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

                         Profit booking in heavyweights drag Nifty on monthly expiry

Following the FOMC meeting, the Asian bourses opened higher, prompting a gap-up opening in the Indian market as well. Initially, trading remained upbeat, but as the day progressed, profit booking in most of the heavyweight spaces drag the market to test the key support of 19600. Eventually, with modest recovery towards the end, the monthly expiry panned out with a cut of 0.60%, tad above 19650.

The day saw some bearish activity, causing discomfort in the bulls' camp. The weakness was attributed to overbought conditions and the monthly settlement, as global cues remained buoyant. Going ahead, the profit booking may extend a bit and the support level of 19500 (20EMA) is likely to get challenged in this scenario. This average has proven to be a strong base during previous price corrections in May and June, resulting in significant positive momentum. Therefore, it holds pivotal importance for the upcoming sessions, as a break below it may lead to meaningful profit booking in days to come. On the other hand, today’s supply zone around 19850 – 19880 is expected to act as a stiff resistance, and only a breakthrough would trigger an upside momentum. The bulls have enjoyed a winning streak for four consecutive expiries, with July recording gains of more than 3.5%. This optimism is expected to persist, but the next leg of the upward move might not be as smooth as it has been. Hence, traders are advised to wait for some consolidation or a decent price dip before considering aggressive long positions.

Throughout the week, key indices exhibited some sluggishness, while the broader markets remained active. The positive breadth in today's trading session also indicated favourable opportunities for stock-specific trades. However, given the likelihood of higher volatility, traders should exercise caution and be selective in their approach.

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