Benchmark continues to make new high, enters crucial zone : Angel Broking
(Time Zone: UTC)
Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
"Nifty started the week on a positive note and continued its exercise of making new records and marked a high of 15773 today. The trading range for the day was not much larger and the index posted gains of about half a percent and ended around 15750.
The uptrend continues for the Nifty as it inched higher to mark new records everyday. However, with the momentum missing from the banking space, the pace of upmove has slowed down a bit. Also, Nifty is trading at some important levels where 15770-15800 is the resistance zone. When prices are trading at all-time high, the retracement levels usually work well in projecting the probable targets/resistances in uncharted territory. Now, if we draw some retracements on the recent corrective move of Nifty, then 127% retracement of the correction from 15431 (Feb. 2021 high) to 14151 (April. 2021 low) comes in the range of 15770-15800. Hence, it would be crucial to see how the index behaves around this range. As of now, the market breadth continues to remain positive and hence, there are no signs of reversal. On the flip side, the index has been respecting the '20 EMA' on the hourly chart on intraday dips which is now placed around 15675. Thus, the above analysis indicates resistance for Nifty in the range of 15770-15800 and support around 15675 followed by 15600. A move above 15800 would then lead to a continuation of the trend towards the psychological 16000 mark.
The market breadth continues to be robust, which is a clear indication that stock specific moves are providing good trading opportunities for short term traders. Hence, one should continue to trade with a stock specific approach and keep a tab on the above mentioned levels on the index."