Weekly expiry ends above 13700: Angel Broking

Market Wrap-up by Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):

"We had a positive start on the indices above the 13700 mark for the first time and it continued its positive bias to end the weekly expiry with gains of about half a percent.

After some consolidation at the start of the week, Nifty resumed its momentum and has continued to register new records. As mentioned in our last couple of reports, this rally was expected to test the 13770 level as it is an important level as per the Fibonacci ratio. This level marks the 127% retracement of the previous correction that we had seen in the first quarter of this calendar year and hence gains some importance. As the index approached this resistance, the broader markets witnessed some profit booking in the last hour of the trade today. Also, the banking index is struggling to cross the 31000 mark since last couple of sessions. There are no signs of reversal yet on charts, but sometimes it is better to avoid aggressive bets in such hunky dory situation and take some money off the table at such juncture. Hence, we advise traders to book profits on long positions and wait for further signal from the market for the near term. The immediate supports for the Nifty are placed around 13660 and 13600 whereas resistance is seen in range of 13770-13800."

Source : Equity Bulls

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