2021 starts with a bang, key support at 14000: Angel Broking
(Time Zone: Arizona, USA)
Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"We had a head-start for the inaugural week of the calendar year 2021 on Monday. Nifty opened higher convincingly above the 14000 mark and kept reaching new milestones as the week progressed. During the mid-week, markets witnessed small intraday hiccups on the back of some uncertainty with respect to the political developments in United States. However, things settled down there in the latter half of the week, which rejuvenated the US markets. Hence, the smart rally in Nifty on Friday was mainly triggered by the overall global optimism.
This has been one of the biggest as well as longest relentless rallies in the history of Indian markets. Those who missed the bus, are completely furious and at the same time, the set of contrarian traders also must have gone for a toss. Honestly, as a momentum trader, such rallies becomes extremely difficult to trade; because whenever the short term tide reverses, it will catch lot of complacent traders on the wrong foot. Nobody knows when it's going to happen and till the time we do not see any major reversal signs, better to be with the flow by following strict money as well as risk management.
As far as levels are concerned, we are in an uncharted territory and hence, it's better to go one step at a time. For the coming week, the immediate levels can be seen around 14400 - 14550; whereas on the lower side, the cluster of supports can be seen at 14300 - 14150 - 14000. The first sign of real weakness would come only below 14000 - 13900. At present, the ideal strategy for traders would be to focus on individual stocks by following a strict exit strategy. We would also advocate booking partial profits in this rally and avoiding aggressive leveraged positions."