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

The Indian market had a splendid start to the week, with the benchmark index Nifty50 clocking new highs. The bullish momentum carried throughout the week, with Nifty being on a roll of achieving new heights daily. However, the stellar run of the eight consecutive days came to a halt ahead of the weekend as Nifty snapped its winning streak and took a breather. All in all, it has been an unprecedented move wherein the broader market also participated in levitating the sentiments. With the weekly closure, Nifty surged nearly a percent and settled a tad below the 18700 level.

Technically speaking, the chart structure construes a positive development, with the indices being in a cycle of higher highs – higher lows. Even the global relief of the Fed to temper its aggressive interest rate hike has provided a significant thrust to the equities across the globe, mirroring which our market continued to soar northwards. Alongside the broader participation from the small and midcap counters can be seen as a sign of progression in such market conditions. As far as levels are concerned, 18500 is expected to act as the sacrosanct support for the index. While on the higher end, the swing high of a18900 odd zone is expected to provide some intermediate resistance, followed by the psychological mark of 19000 in the near term.

We remain sanguine with the uptrend and would advocate the traders to utilize the dips to add long position in the index. Also, we expect strong moves outside the indices as the midcap space has witnessed a multi-month breakout and could unfold a new leg of rally in the comparable period. Simultaneously, one should stay abreast with global and domestic developments on a regular basis and continue with a similar buy on decline strategy till the time important supports are held comfortably.

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