Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"The inaugural week of the new financial year kicked off higher owing to cheerful mood across the globe. However, this early lead could not be extended much due to lack of follow up buying on the subsequent days. On Wednesday, our benchmark Nifty did register a new high; but it was not even by a single point and hence, eventually turned out to be a formality. We saw modest profit booking after this development in next couple of days to sneak marginally below the 11600 mark. Fortunately, this profit booking did not extend further as we saw good traction across the board on Friday to conclude the first week on a positive note.
As far as direction is concerned, no brainer we are still in a strong uptrend. Yes, in between we may see hiccups; but one should not get intimidated by such declines. So many stocks had entered an extremely overbought territory; so they needed to cool off a bit and this is what we have seen in last couple of days. However, this certainly doesn't change the trend; in fact, it should be considered as a healthy correction to see sustainable rally in the near term. We advise traders not to look for shorting opportunities, rather use dips to buy into some quality propositions. For the forthcoming week, 11720 - 11760 are the immediate levels to watch out for. It's a matter of time, we would see index surpassing these levels and entering an uncharted territory. On the downside, 11609 followed by 11593 would now be seen as key support levels for the index.
Traders are advised to stay positive and try to identify potential candidates who have probably given decent corrections and are now gearing up for the next leg of the rally."