Tail end correction spills water on bulls' comeback : Angel Broking
(Time Zone: UTC)
Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Trading for the week started on a positive note on Monday and as the week progressed, the recovery mode started picking up some pace. Before anyone could realize, Nifty and BANKNIFTY were back to 15000 and 34000, respectively. Everything looked hunky dory and appeared as if we are headed higher now. But market participants became a bit tentative around these psychological levels which eventually resulted in a sharp decline on Friday. Despite this, the week ended with more than 2% gains for the Nifty.
The market seems to be in a deceptive mode as it first caught bears on the wrong foot after surpassing 14750 and now with the tail end correction, the bulls are completely clueless and unsure of the next move. Such market is literally a nightmare for the swing traders as market is unable to see any kind of follow up move. Hence looking at all this, it is quite clear that the benchmark is trapped in a wider range of 1000 points i.e. 15000 - 14150 and till the time we do not see sustainable breakout on either side, we would like to remain neutral on market and would like to consider each day as a new day. Within this consolidation, the inclination would slightly be on the positive side as we are seeing a strong support zone of 14550 - 14450. Here the banking index holds some significance as long as 32000 remain intact. For Nifty, the immediate resistances are to be seen at 14730 - 14860.
Let see how the action unfolds as we step into the May month. There is a famous old saying in market 'Sell in May and Go away'. In the recent years, the market has proved it incorrect and participants would certainly be hoping for the same. The only critical observation here is the overall placement of the 'NIFTY MIDCAP50' index. Recently, we had mentioned about the breakdown from the 'Head and Shoulder' pattern on daily chart and despite the recent recovery, we can see it facing resistance around the confluence point of the neckline and the 'Falling trend Line' levels of 6850 - 6900. Till the time these levels are not surpassed, avoid aggressive bets and focus only on individual themes in the market."