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Below are Views On RIL propels Nifty beyond 17300, avoid being complacent By Mr. Sameet Chavan, Angel Broking Ltd

We had a bumper opening on Monday at new record highs citing to cheerful mood across the globe. This head start certainly set up the tone for the entire week as markets didn’t look back from thereon. Everyday our benchmark index was making new high and in the process even reached the millstone of 17000. In fact it didn’t stop there as we witnessed a continuation of the upward trajectory in last couple of sessions; courtesy to stellar comeback from heavyweight RELIANCE who single-handedly propelled Nifty beyond 17300. Eventually, it happened to be yet another spectacular week for our markets as the bulls added another 3.70% to their kitty.  

Nifty has been enjoying a strong Bull Run since last 16 – 17 months and in last few weeks also, it gave some mesmerizing moves. Although the recent momentum has been exceptionally strong, we can see some extreme levels in benchmark index now. If we take a broader view, we can see Nifty reaching the 200% ‘Fibonacci Retracement’ of the last year’s massive decline from Jan’20 high to March’20 low. Also time-wise, Nifty has entered 7^th zone as per ‘Fibonacci Time Series’ on the monthly time frame chart. We do not want to sound pessimistic but since couple of important key ratios are coinciding at current juncture; it will be unfair to overlook them. To be on the safer side, we advise traders to keep booking profits in the rally and avoid taking aggressive longs for a while. Yes, momentum traders can still continue with their stock specific trades; but needs to follow strict stop losses and booking timely profit is advocated.

As far as levels are concerned, 17400 – 17500 are to be considered immediate hurdles; where we would certainly avoid being complacent. On the flipside, 17200 – 17050 are to be seen as key supports for the forthcoming week. The first sign of weakness would start below 17000 after which the crucial make or break support zone of 16700 – 16600 would be tested.

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