Bulls remain adamant, continues to make new milestones: Angel Broking

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

"Our markets started the week above 14100 on back of positive global cues. Post some consolidation, the index corrected and sneaked below the 14000 mark, but the dip again got bought into and Nifty crept higher for the rest of the day to end well above 14100 with gains of over 100 points.

The bulls are reluctant to give up and the intraday dip again witnessed good buying interest from market participants. Nifty continued to make new milestones and all the sectors, except banking, participated in the up move today. So the trend continues to be positive with no signs of reversal. However, at all-time highs, usually retracement and extensions of the previous moves works well to determine the resistances. When applied certain retracement to the recent correction and an extension to first the price upmove from the March low, the resistance for Nifty comes in the range of 14170-14200 which is not very far from today's close. Hence, it would be crucial to see how the index behaves around this resistance and thus market participants should be vigilant of the same. It is definitely not advisable to take any contra calls in anticipation of any reversal as we are trading in a strong uptrend, but traders should prefer to book timely profits on existing positions and tighten the risk management part of the trade. The immediate support for the Nifty is placed at 13950 and now becomes a sacrosanct for this leg of upmove.

Most of the sectors participated in the up move today with Metals, IT and some Pharma names showing significant outperformance. On the other hand, the banking space continued to consolidate and underperformed relatively. Traders are advised to focus on such stock specific opportunities which are providing good moves and capitalize on the same."

Source : Equity Bulls

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