Some breather before heading towards record highs: Angel Broking

Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):

"It was more of a week of consolidation for our markets after recent relentless run from lower levels. We started the trading for the week on a positive note and then continued our march higher towards the next psychological junction of 11500. Since the overall optimism was so high, Nifty did manage to test and even surpass this level during the week. But during the latter half of the week, index saw subdued moves with some hint of profit booking on Friday to conclude tad below 11500 by adding negligible gains to the previous week's close.

This week's lethargic move was no surprise to us as we had clearly opined about a possible consolidation after Nifty entering the important trading range of 11500 - 11600. In fact, we saw some tiredness on the last day of the week. Nifty breached previous day's low for the first time in last 9 days; whereas Bank Nifty did similar on the 13th day. More than weakness, we would rather construe this as pull back or profit booking move, which was very much overdue after giving such a steep rally in a short span.

As far as levels are concerned, 11520 followed by 11600 remains to be immediate hurdles and on the flipside, support is visible in the vicinity of 11420 - 11383 for the forthcoming week. In our sense, this breather was necessary before Nifty moving towards its record highs. Thus, we still advise traders not to have a contrarian approach on market and should rather capitalize on such declines. However having said that, one needs to be very fussy now when it comes to the stock selection; because not all stocks are likely to perform well in such kind of consolidation."

Source : Equity Bulls

Keywords