Nifty almost at 14500, IT and Auto stocks shine: Angel Broking
(Time Zone: Arizona, USA)
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Second week of the new calendar year started with a good bump up at fresh record high tad below the 14500 mark. In the initial hour, we witnessed a small bout of correction; but similar to recent trend, the intraday decline was bought into and the index thereafter once again resumed its upward trajectory. The opening was mainly led by the IT stocks after a good set of numbers from IT giant TCS over the weekend and then few Auto heavyweights took it from there to add another percent to the Bulls' kitty.
The gravity defying move continues and although, it has turned into a bit of euphoria, markets are not willing to give any correction at all. Only god knows when it's going to happen, but till then it's better to participate through stock centric approach by following a money as well as risk management. As a technician, it's becoming tougher day by day to project upward levels as we are located in an uncharted territory. Beyond 14500, next psychological level would come around 14600 and on the flipside, 14350 - 14300 becomes the immediate support. We reiterate that even if one remains with the flow, avoid becoming complacent and too aggressive. Hence, as a short term trader, it's advisable not to create leveraged positions.
As mentioned in the earlier section, today's move was mainly propelled by the IT and Auto stocks; whereas banking remained slightly on the back foot. Traders should look to identify such appropriate themes and we reiterate that it's better to keep booking profits in the ongoing rally, because every now and then, we are likely to see stock specific correction in the market."