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Below The "Weekly Wrap Up" by Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

The week was filled with action as Nifty began by opening with a gap up on Monday, reaching a fresh high beyond 20000 and closing around that level. Tuesday saw another strong gap-up opening, but unlike the previous day, there was a broad-based sell-off that caught complacent traders off guard. However, leading stocks came to the forefront, and Nifty continued its upward trajectory for the week, concluding with a gain of 1.88%, just below the 20200 mark.

The winning streak for the bulls continued for the third consecutive week, propelling Nifty into uncharted territory and forming a positive 'SAUCER' pattern, which is favorable for the bulls. Nevertheless, indicators have entered the overbought zone, and the daily chart displays small-body candles, suggesting some signs of fatigue among the bulls. Moreover, prices have approached a key level, the 'Golden Ratio Retracement' at 161.8% of the fall from 18888 to 16828 i.e. considered as a stiff resistance. Hence, going ahead the next leg of up move may not be as swift as recent times, potentially involving in-between pauses or price corrections. The overall sentiment remains positive, and the advisable approach is to view dips as buying opportunities. In this scenario, the previous resistance around 20000 is likely to act as immediate support, while Tuesday's panic low of 19900 remains a critical pivot point. On the other hand, in uncharted territory, the next resistance zone lies in the range of 20400 to 20500.

The Midcap Index ended its weekly winning streak, with Tuesday's selloff introducing caution in this segment. Going forward, this space may take a back seat, and intermittent price corrections could persist after recent impressive gains. During the week, front-line counters maintained their strength, and traders should focus on such areas that are deemed safe bets. However, one needs to be very fussy in stock selection as low-hanging fruits have already gone.

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