Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Last week our benchmark index clocked new record high of 11856.15. However, it turned out to be a formality as there was no follow up momentum seen to extend the rally. Last Friday, markets gave a hint of profit booking and the similar sort of decline was seen on the first day of the week gone by as well. Some macro factors like, Brent crude rising beyond its key levels of $73-74 weighed down heavily on traders' sentiments. Fortunately for us, the damage was not as severe as it looked like on one moment. Due to some smart recovery in the latter half, Nifty managed to reclaim the 11700 mark at the end of the week.
There is a famous saying, all's well that ends well and its goes perfectly with this week's price development. Firstly, we successfully managed to defend the key support of 11549 and then went on to close well inside the safe territory by reclaiming the 11700 mark. Now, at his juncture, we do not have signals that will provide us a proper trade set up. But since the broader trend remains bullish, we continue to remain upbeat on the market as long as it holds 11549, convincingly. On the higher side, 11800 followed by 11856 are the levels to watch out for. If we see any renewed buying interest in some of the heavyweight constituents, we would expect index hitting fresh highs very soon. Till the time, the consolidation continues in the range of 11856 - 11549.
Traders are advised not to take aggressive positions till the time we remain trapped in the mentioned range. At such time, a stock centric approach becomes the more pragmatic approach."