Nifty ends below 15000 amid volatile swings : Angel Broking

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

"Market had a surprising gap down on previous Friday which was followed by extended sell off throughout the day to drag the Nifty towards 14500. The way it closed along with sharp uptick in 'Volatility Index (VIX)', some decent correction was on cards. But again to surprise everyone, markets had a gap up opening on Monday which was then followed by a v-shaped recovery for the three consecutive sessions. In the process, Nifty even managed to surpass the 15200 mark; however, market was not done with its twist yet. Globally, markets had some jittery moves which had a rub off effect on our bourses as well. In last couple of sessions, we witnessed some correction to end the week with nearly three percent gains but trimmed some portion to close below 15000.

It was a difficult week for momentum traders because the moment markets tried to decide its direction; we tend to have some surprises. Although, we did manage to recover well from previous Friday's level, market left us with some doubts. As far as levels are concerned, 15100 and 15273 are to be seen as immediate hurdles; whereas on the lower side, 14760 - 14467 are to be seen as key supports. If we take a glance at the weekly chart, we are still unsure whether market has enough strength to go beyond recent highs around 15400 - 15550 without seeing any decent price or time wise correction. But at the same time, they are just refusing to fall as well. Hence, it would be interesting to see how markets behave in the first half of the forthcoming week. It should then ideally give us some fair idea where markets are heading in the short term. Traders are advised to focus on stock specific moves but should ideally avoid aggressive leveraged positions overnight.

Sectorally, lot of themes did extremely well for the major part of the week. But some of the pockets did cool off towards the end and 'NIFTY MIDCAP 50' was clearly one of them after registering record highs. Globally, commodities saw some decent correction and hence, it would be interesting to see how this theme play out as well. Very importantly, the financial space is placed at a crucial level and any weakness from hereon would lead to short term breakdown in this pocket as well."

Source : Equity Bulls

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