11000 merely a formality, stay upbeat and keep booking timely profits: Angel Broking
Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"It was indeed an action packed week for our markets, rather, we should say for global markets. Trading started on Monday with a decent upside gap owing to favorable global cues. However, this turned out to be a formality as index gave up a major portion of its morning gains. This was followed by a bout of profit booking to mark one of the weakest sessions in the recent past. But the real action started from there on. On the following day, we witnessed a massive bump up at the opening; courtesy to smart rallies in global peers after the recent development on the vaccine. Everything looked hunky dory but post Reliance AGM; the stock took a nosedive and so as our markets. We were back to 10600 but again the market had completely different plans as we witnessed a smart recovery first and then a consistent rally to conclude the week at new 4-months high.
Our markets saw a roller-coaster move throughout this week; in fact during the day also swings were wild, barring Friday's session where we witnessed a unidirectional move (northwards). Now let's see what charts have to say for the forthcoming session. We had anticipated a possible breakout from the sturdy wall of 10850 during this week. Honestly we expected it in the initial part of the week but we went through a correction first and hence, the conviction became stronger during the midst of the week about Nifty surpassing hurdle soon. Finally with today's late surge in banking conglomerates, Nifty has confirmed a breakout above 10850, which resembles a 'Bullish Flag' pattern on daily chart. Now, the banking seems to have regained strength which we believe should lead the move in the forthcoming week. As far as levels are concerned, the up move should ideally get extended towards the 78.6% retracement zone at 11100 - 11200.
In the previous weekly commentary, we had mentioned these levels and anticipated a possible correction after reaching these levels first. But since we have already seen a small decline early this week, we will have to reassess the situation whether the markets have further steam left to go beyond it or not. So from here on, one step at a time is the strategy to follow and better to timely book profits as well in the rally. Traders are advised to keep following stock specific moves and the base now remains at 10660 - 10560."