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Below are Views On Relentless rally continues, 18000 conquered with an ease By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel One Ltd)

Markets had a soft opening to the week on Monday taking into consideration some nervousness in global bourses. However the things settled thereafter as we witnessed a strong close above 17900 for the first time ever. This was followed by back to back excellent sessions for our market and in the process; the Nifty not only reached yet another milestone of 18000 but even surpassed it comfortably to mark new highs beyond 18300. After two weeks’ of slight pause, Nifty finally resumed its upward trajectory to add more than a couple of percent to the mighty bulls’ kitty.

Despite being a truncated week, the bulls made their presence feel in all four trading sessions. Importantly, the banking space provided a helping hand first when it was the most needed because the IT basket had a shaky start after weak set of numbers from TCS over the last weekend. In fact, as the week progressed, the buying momentum accelerated in the banking counters which led the benchmark at such record highs. This rally has been relentless in nature and we must admit that it has overshot our expectations by a fair margin. But this is how market functions, it is always full of surprises and it moves the way it wants to. Now since we are trading in an uncharted territory, it would be very difficult to project higher levels. Hence, 18500 is to be seen as immediate psychological level and thereafter every 100 points round figure is to be considered as next level.

As far as supports are concerned, 18200 followed by 18000 are to be seen as strong supports for the coming days. Here, 18000 holds a key for the bulls and as long as it’s defended comfortably, the bulls have no reason to worry for. Although the trend has been extremely strong, we reiterate that one should avoid getting complacent at such elevated levels. The pragmatic approach would be to go one step at a time and try to avoid aggressive bets overnight. The stock specific action continues and hence, traders are advised to keep focusing on such bets.

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