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Below is on Weekly Wrap Up By Mr. Sameet Chavan, Head Research, Technical and Derivatives, Angel One Ltd

Our markets started the week on a flat note on Monday and remained lethargic like previous few days. On the following session, the bulls started making some efforts to elevate markets higher from the key support zone of 18600 – 18700. This was aided by the piece of news flow with respect to HDFC twin’s merger towards the fag end of the day. The entire financial space became buoyant after this development, resulted in lifting Nifty beyond the 18800 mark convincingly. This optimism was then fuelled by the spectacular rally in US markets later that night. We were set to have a head start on Wednesday and the momentum just took off thereafter. We not only managed to clock new high but went on to reach the milestone of 19000 on the expiry day. On Friday’s session, the bulls took it forward to close tad below 19200 by adding massive 2.80% to the bulls’ kitty on a weekly basis.

It was a truncated week for our domestic bourses but by no means it was short of any action. A long slumber phase finally came to an end and there couldn’t have been a better timing for this as it happened in the monthly expiry week. As we alluded to in the previous commentary, market is awaiting some trigger and it’s a matter of time, we would see Nifty clocking fresh highs and then a milestone of 19000. It’s finally a reality now and the recent laggard financial space became the charioteer for this move. Technically speaking, we are amazed with how things fall into place so accurately sometimes. If we take a glance at the weekly time frame chart of Nifty, we were observing 8^th zone of ‘Fibonacci Time Series’ completing in this week only. Precisely, it happened and as we are stepping into the 9^th zone, market is at new highs with all heavyweights participating collectively. Price-wise, we can clearly see a configuration of ‘V’ pattern which has been broken out in the upward direction. The theoretical target of this is much higher but with the short to medium term view, we continue to remain upbeat on the market. As far as levels are concerned, we can see Nifty heading towards 19350 – 19500 in the forthcoming week. However, one needs to be very selective going ahead because the low hanging fruit is gone for the momentum traders. In between, we may see bout of profit booking, but the directional bias remains strongly bullish till the time 18600 is not violated. Before this, 19000 followed by 18800 are to be seen as key supports.

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