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Below is on Weekly Wrap Up By Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd

Our domestic markets started the week on a promising note on Monday. However, on the same day itself, we had a muted price action with bulls remaining at the dominant position. This was followed by a good traction mainly in Nifty, courtesy to marquee names like, RELIANCE and few Metal counters. In this process, Nifty managed to reclaim 18750 on a closing basis. However, on Thursday, our market reacted quite unexpectedly post the FED policy, which practically was considered a non-event globally. Maybe it coincided with the (weekly) expiry factor as markets corrected quite sharply, especially the BANKNIFTY and FINNIFTY. Fortunately, things seem to have stabilized on Friday as we witnessed a sustained buying throughout the session across the board. Eventually, the Nifty managed to register a highest close ever above the 18800 mark.

It was certainly an action-packed week for our markets and by far, we have outperformed the US bourses in recent times. Amid the ambiguity, the Nifty is now knocking on the door of clocking fresh record highs and even reaching yet another milestone of 19000. Considering a strong close above 18800 and with recent laggard, BFSI space participating in the move on Friday, we will not be surprised to see this achievement in the first half of forthcoming week. On the flipside, the base has shifted higher towards 18600 – 18550, before which 18700 is to be considered as an immediate support. We continue to remain sanguine and would reiterate on using intra-week decline to add bullish bets in the market. Meanwhile, all eyes would be on global market as they play a vital role in next leg of the rally. Also, it’s important for high beta financial space to start showing its buoyant nature. If things fall in place as per the expectations, we are likely to have merry run in the near term.

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