Nifty witnessed a lackluster weekly expiry: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):

"Following the positive global cues, Nifty started the day with a gap up at a new record high of 13215. However, there was no follow up move in the index and it consolidated in the range of 13100-13200 for the whole day and ended with marginal gains at 13134.

Although we had a positive opening, it was another day of consolidation for the indices as the Nifty traded within a narrow range on the weekly expiry day. The Bank Nifty index failed to show optimism and it too continued its consolidation. However, the auto sector turned to be the real star of the day and the midcap space continued its northward journey. Although there are no signs of a reversal of the trend, the rally has now concentrated to the midcap and the small cap names. Such divergence is usually a sign of the exhaustion of the rally and hence, it is always better to book some profits in such scenarios. Thus, we advise traders to look for stock specific trading opportunities according to the momentum while positional traders and investors should look to book some profits on their existing longs. However, one should not look at this as opportunity to take any aggressive contra trades as we would wait for some development on the charts in the near term for any signs of reversal. Thus, trading with a stock specific approach or staying light on positions should be an apt strategy for now.

As far as levels are concerned, the immediate supports for Nifty are placed around 13000 followed by 12900 whereas 13225-13300 are the levels to watch on the upside."

Source : Equity Bulls

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