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

Winning streak continues for the third consecutive week; Nifty reclaims 17800

After an extended weekend, our markets started with a small upside gap on Monday; however, post the opening there was no major traction within the key indices. As the week progressed, the optimism was back, as Nifty continued with its northward journey where the bulls capitalized on every Intra-week dip. The winning streak continued for the third consecutive week as Nifty reclaimed 17800 on a weekly basis.

Despite being a truncated week, the bulls added another 1.30% to their kitty on a week-on-week basis. With this, prices have comfortably closed above the March swing high of 17800. This is a very positive development because prices have broken above a major swing high for the first time in this calendar year. From a technical perspective, there is a ‘Rounding bottom’ formation visible on the daily time frame chart, which augurs well for the bulls. In addition, if we observe the weekly chart, we can see a fresh buy signal in the RSI smoothened with its signal line. This indicates a continuation of up move in the near term. Having said that, one should avoid being complacent as this recent up-move has been very steep without any breather and hence, some in-between pause or mild profit booking cannot be ruled out. Hence, traders should prefer to take some money off the table at higher levels, whereas, in case of any dips, one should use it as an opportunity to add bullish bets. With the continuous nine days winning streak, the support level continues to shift higher as we now see immediate support in the zone of 17700 - 17600; whereas 200-SMA around 17500 is likely to act as a sacrosanct level. On the flip side, the next set of resistance is seen at the psychological level of 18000 followed by the next swing high of 18137.

The major action during the week was seen outside the index as many front-line and mid-cap counters gave mesmerizing moves. Traders should continue to focus on such potential movers, however, one needs to be very selective as the low-hanging fruit is already gone.

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