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Below is quote on Market Wrap Up - Strong surge in the fag end helps Nifty claim 16600 by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking

Nifty started the session almost flat and traded within a narrow range till noon. It then gradually corrected and breached the 16500 mark due to weakness seen in Banking space and the broader markets. However, it was not done yet, we saw a sharp upmove in the last hour of the trade which propelled the index to a new milestone and ended above 16400.

The index continues its dream run and has surpassed the 16600 mark in today’s session. It is a bit surprising to see that the banking index has underperformed so far and has yet to show any fireworks with Nifty marking new records. However, the sharp recovery from its 20 DEMA support in Bank Nifty is encouraging and a follow up move would be interesting to see. On the other hand, the IT space continues with its mesmerizing moves and has been a charioteer in taking the benchmark higher. Hence, until there are any signs of reversal, we continue with our advice to avoid contra trades on the index and look for stock specific opportunities with a focus on the outperforming names. The immediate supports for Nifty are placed around 16500 and 16400 while 16700 would be next level to watch on the higher side. 

The Asian markets were trading mildly negative today but still our markets managed to end on a flat note. Nifty traded within a narrow range throughout the day and ended with marginal gains above 16560.

Our markets outperformed other Asian markets today and managed to end in the green. However, the market breadth was negative indicating continuation of profit booking in the broader markets. The focus clearly has shifted to a few large cap names since last few days which has kept the index buzzing but the midcap and the smallcap space is lacking such momentum. The immediate supports for Nifty are placed around 16460 and 16400 while levels around 16600 and 16700 are to be considered as immediate resistances. Since there are no reversal signs on the index, one should avoid taking contra calls on the index and rather be very selective in picking stocks for trading. Also, since we are witnessing such divergence in broader markets, traders should avoid leveraged positions and also book timely profits on long positions. 

Last couple of sessions before the weekly expiry turned out to be cheerful for the bulls, but the index consolidated within a narrow range on the expiry day and ended tad below 16300 with marginal gains.

The index started the session marginally positive and witnessed a dip towards 16200 in the first half an hour post opening. However, the dip was grabbed as a buying opportunity and the index recovered smartly to surpass 16300. Although Nifty ended marginally below 16300 with some gains, the breadth was negative and stock specific action was seen throughout the day. Nifty has formed a small ‘Doji’ candle on the daily chart and all eyes will now be on the reaction of market on the outcome of the RBI monetary policy which is scheduled tomorrow. Negative breadth in last couple of sessions indicate some profit booking in the midcap space and hence, we continue with our positive bias but advise to book profits timely as well.

As far as Nifty levels are concerned, 16200 and 16120 are seen as intraday supports for tomorrow while 16350-16400 is the range to watch out on the higher side.

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