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Below is Quote on the Weekly Market Wrap Up - Thinnest weekly range at record highs by Mr. Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking Ltd 

Markets had a positive start on Monday and without wasting much of a time, Nifty continued with its streak of achieving new milestones. During the first couple of sessions, Nifty clocked back to back fresh highs beyond 17400; but failed to close beyond it on both the occasions. In the latter half, we saw some hint of profit booking but mighty bulls came back strongly not only to defend key supports but also to lift the benchmark index beyond 17350 comfortably to mark highest ever weekly close.

The price action in key indices this week was extremely dull as we witnessed one of the thinnest weekly trading ranges for a long time now. Although Nifty looked a bit uncomfortable around 17400 throughout this week, we did not see any major weakness overall. The moment it falls by nearly a percent, the buying tends to happen immediately. As of now, clearly bulls are having a firm grip on the market but as we have been mentioning since a week or so, they would find a bit difficult now going ahead. We reiterate our observations for becoming slightly cautious at current levels. They are, 1) we can see Nifty reaching the 200% ‘Fibonacci Retracement’ of the last year’s massive decline from Jan’20 high to March’20 low, 2) Time-wise, Nifty has entered 7^th zone as per ‘Fibonacci Time Series’ on the monthly time frame chart. 

It may look a bit contradictory to adopt a cautious stance when market is making new highs almost every day. But these mentioned evidences have proved their efficacy in the past and hence cannot be overlooked. So let’s see how things shape up going ahead. As far as levels are concerned, 17450 – 17500 would now be seen as sturdy wall; whereas on the flipside, the first sign of weakness would come only after confirming a single day close below the support zone of 17300 – 17250. We advise traders to continue with a stock centric approach by following strict stop losses and booking timely profit is also highly recommended.

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