Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"What a splendid week it turned out to be for our markets as we finally saw our benchmarks hitting record highs after undergoing some strain for nearly five months. Throughout the week, Nifty maintained its positive posture and today's session started with a bang at new highs. Barring some consolidation in the first half, there was a sustained buying observed across the board to eventually conclude the week with whopping gains of 2.44%.
Nifty above 11200 is finally a reality now and the recent anticipation has now become a confirmation. Couple of weeks back, we had taken a stance after observing a 'Bullish Diamond' pattern on weekly chart. The 'RSI-Smoothened' crossing the 70 mark (in upward direction) at the same time provided credence to this price configuration. After such a decent rally, is market overbought now? We would say not yet, there is still long way to go or we would rather reframe it as probably a start of new leg. With today's gap up opening, we can see a breakout from previous highs with a 'Breakaway Gap'; indicating strong optimism to continue with some force. Since, we have entered an uncharted territory; it would be difficult to give precise levels. But, if we have to keep any number in our mind, then we would not be surprised to see index hastening towards 11450 - 11500 and beyond. As far as supports are concerned, 11185 followed by 11092 would be seen as immediate levels. Any possible decline towards these levels should ideally be used as a buying opportunity.
Last week, we had thrown some light on 'Nifty Midcap 50' index possibly in a process of bottoming out. It was oscillating in a falling channel and the said pattern has now been confirmed on a closing basis. In fact, the entire midcap universe was the flavor throughout this week. Mind you, it's just a beginning; traders should not hesitate even after this spectacular intra-week rally. One needs to pick a right proposition and should keep using decline to buy into."