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

Previous Friday’s sharp profit booking was a precursor of some sustainable decline after reaching the psychological mark of 18000. With US markets concluding the week on a weak note, we started the monthly expiry week on a sluggish note. The selling augmented right from the word go to break 17600 first and then eventually drifted below the key point of 17500 towards the end. This was followed by yet another nervous start to slide towards 17350 in the initial trades on Tuesday. Fortunately, this being the key support, a strong buying interest emerged at lower levels to witness a V-shaped recovery on the same day itself. During the remaining part of the week, markets remained sideways with a hint of some profit booking at higher levels. Eventually, the week concluded with a slightly over a percent cut.

The Nifty finally snapped its long weekly winning streak. Overall if we see, the Nifty retraced by nearly 650 points from the recent high i.e., nearly 3.50%. Since the price correction happened in merely three trading sessions, some sort of time correction was much needed, and this is exactly what our markets had undergone during the latter half of the week. The Nifty has now closed precisely around the mid-point of the immediate trading range of 17750 – 17350 and since markets have lost their sheen, it would be difficult to predict the immediate path of action amid some global nervousness. In our sense, one should avoid trading aggressively within the range and till the time, we remain above 17350, there is no reason to worry for. Only a breakdown below this sacrosanct support would extend the corrective phase towards the major support zone of 17100 – 17000.  Before 17350, we can see immediate support around 17450. On the flip side, 17700 – 17750 are the levels to watch out for. If bulls have to strengthen their stance, the Nifty needs to surpass the higher boundary with some authority. Till then it’s better to take one step at a time and ideally, the positioning must be on a lighter side.

Since global markets are showing mixed directions and few global events are lined up, it would be important to keep a regular tap on these developments. If there is no aberration in the coming week, we may resume the higher degree uptrend soon.

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