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Below are Views On Some profit booking around 15400, avoid aggressive bets By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

“Today morning, the global set up was just ideal to have a good head-start at new record highs. In fact, the index managed to extend gains in few minutes of trade to reach yet another milestone of 15400. Everything looked hunky dory; but all of a sudden market started correcting in the subsequent hour after posting a new high of 15431.75. The profit booking aggravated at the mid-session to test the sub-15250 mark. Fortunately the fall got arrested and due to the modest recovery in the latter half, Nifty ended the volatile session on a flat note.

Yesterday’s strong close coupled with favourable global cues in the morning, our markets managed to carry their momentum at the opening today. However, since we reached a crucial resistance zone of 15380 – 15500 (which is the 161% ‘Golden Ratio’ of the entire fall from Jan’20 highs to March’20 lows), markets saw some profit booking at higher levels. We were not surprised with it as we had advocated on booking profits in the mentioned range. With today’s small correction, still there is no weakness visible on charts; but we continue to remain cautious and advise against creating aggressive longs now. For the coming session, 15380 – 15430 remains to be a key resistance; whereas on the lower side, further weakness is possible after breaking below 15240. In this scenario, 15175 – 15100 can be retested.

Traders are advised to keep a close eye on the above mentioned levels and should ideally stay light on positions. Yesterday’s charioteer banking space cooled off a bit today along with some of the other heavyweight pockets. However, the day clearly belongs to some of the ‘Power’ stocks and ‘PSU’ names, who had a smart move throughout the session.”

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