Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Truncated week in our markets started off well after US markets witnessing a strong upsurge on preceding Friday. The entire Asian basket too had a great run early in the morning on Monday; but we saw most of these bourses later on giving up their gains. Despite this, we managed to hold our ground and had a gradual up move throughout the remaining part to conclude firmly well inside the positive territory. This was followed by yet another gap up opening, which led to fresh record highs surpassing August 28, 2018 peak of 11760.20 and recent high of 11761. Last trading day of the week began with a strong bump up at the opening; but it turned out to be a formality as we saw gradual profit taking throughout the remaining part to eventually conclude below the 11800 mark.
With last week's up move, the Nifty has managed to clock highest ever weekly closing and the way it's shaped up, we will not be surprised to see many such achievements in days to come. Yes, the kind of profit booking we saw on Thursday, especially in banking index, it does not augur well. But, we would still like to continue with the broader trend, which is strongly bullish. In between, it's natural to see such hiccups; but it certainly does not warrant any kind of trend reversal, at least at this juncture. So rather than pre-empting reversal and adopting a contrarian approach, we would follow stock specific approach for a while.
As far as levels are concerned, Tuesday's gap area of 11731.55 - 11704.60 would now be seen as immediate support. After this, 11549 can now be termed as a sacrosanct level for momentum traders. Only a move below this would apply brakes on this optimism for a while, till then continue with a buy on decline strategy. On the flipside, 11800 - 11857 are the levels to watch out for. But if above mentioned supports are held, then we will not be surprised to see index hastening beyond these hurdles to climb the 12k mountain. At this juncture, one needs to be extremely stock specific by following a proper exit strategy."