Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"During the last week, trading started on a flat note on Tuesday as there was no major trigger on the global as well as domestic front. The index then gradually resumed its upward trajectory to reclaim 13000 first and then clocked fresh record highs as the week progressed. Index specific, there was no major movement but overall bias remained positive as we managed to add another couple of percent to the previous weekly close.
There has been no stopping for this recent marathon rally and it's been more than one and half month now, markets are giving gravity defying moves. In the week gone by, if we look at the benchmark, we may not get the real picture of the overall action; but if we take a glance at some of the individual themes like Auto, individual stocks have given spectacular moves throughout the week. Now technically speaking, we have been hovering in the overbought territory since the last 2-3 weeks; but sometimes the market does not respect the theory and hence, it can remain overbought for a long time as well. But in our sense, the optimism has now turned into a bit of euphoria and when such a condition happens, it's advisable to be a proactive bit and take some money off of the table, especially for a momentum trader. Undoubtedly, the broader degree trend remains strongly bullish and in case of any meaningful decline, one should stick to the 'buy on decline' strategy.
As far as levels are concerned, 13300 - 13500 would be seen as immediate resistance zone; whereas on the lower side, 13150 - 13100 are the levels to watch out for. If we meticulously observe the intraday charts, we can see a formation of 'Rising Wedge' pattern on hourly chart and hence, a move below 13100 would lead to further profit booking towards 12980 - 12900. Hence, traders are advised to take a note of all these key levels and act accordingly."