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Below are Views On Profit booking weighs down around the 15000 mark By Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking)

Nifty started the session with a gap up around the 15000 mark. It traded above that level for the first half and hour, but it then corrected sharply to mark a low of 14815. The index then recovered from the lows but no follow up buying was seen and it ended the expiry day on a flat note.
 

The index reclaimed the 15000 mark at opening after one and a half month. However, as the index have already seen a sharp upmove in last few sessions, the momentum readings on the lower time frame chart reached overbought zone and thus, we witnessed profit booking which weighed down heavily around this psychological mark of 15000. Since the Nifty has given a breakout from a Channel in yesterday’s session, the short term trend remains up but some bouts of corrections can be there due to overbought set ups. On dips, the immediate support is placed around the hourly 20 EMA at 14790 while the resistance is around the 15000 mark. A sustained move above the 15000 level could then lead the index towards its next zone of 15150.

Some of the sectoral charts are interestingly placed. The Bank Nifty index too had seen a sharp surge in this week and today’s high in morning was around a falling trendline resistance from where we witnessed profit booking. Also the midcap index is around the trendline resistance of the recent consolidation phase. It would be important to see how momentum unfolds in these two indices as they play a key role in lifting the benchmark. On the other hand, the dream run continues for the metal counters as they continued to see buying interest. Traders are advised to look for such potential out performers and trade with the trend.

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