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Below are Views On Market continues its optimism, but approaching its key levels now By Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)

he index started the session on a flat note today, but it witnessed a gradual upmove throughout the day. Amidst participation from the broader market, Nifty ended at its high point of the day around 14650 with gains of over a percent.
 
The markets have swiftly moved higher from the recent swing low and have surpassed its 20 EMA at closing today. Today, we even saw other sectors and the midcap space showing a decent buying interest and hence, the market breadth was robust. Now, if we join the recent
swing highs and lows of this corrective phase, then it is seen that the index is trading in a ‘Channel’ and the higher end of this pattern is at 14720 - 14750. It also coincides with the gap area which was formed on 9 th  April. The real test for the bulls will be this resistance and
if the market has to march higher towards previous highs, then it needs to surpass this with an authority. On the flipside, any profit booking or correction from this resistance would mean a continuation of the corrective phase. Hence, traders are advised to watch out how
the index behaves around this important barrier and trade accordingly. On the lower side, the hourly time frame charts indicate an immediate support now around 14530.
 
Today we witnessed a good participation from the broader markets and if the momentum has to continue, then Nifty will have to break the above mentioned barrier. Traders are advised to keenly keep a tab and look for opportunities where price up moves or consolidation breakouts are supported by good volumes.

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