Nifty, which had a gap-up opening on Monday on the back of positive global cues and concluded the session at a fresh record high (on closing basis), may find support between 9400 points to 9377 points as it continues to propel towards the level of 9600 points, which might be achieved quite soon, however, at those levels traders should start taking some money off the table, Angel Broking said in a couple of research notes.
“During the week, the Nifty registered yet another record high of 9450.65 and eventually, despite some profit booking in the latter part, has managed to defend the 9400 mark on a closing basis. Now, if we try to study the market movement (of last four months) in hindsight, we can clearly jump to a conclusion that the index has been following a particular pattern i.e. a sharp up move followed by some consolidation in small range and then once again a breakout from the range to resume the uptrend. The similar thing we witnessed in the week gone by and as a result, we can see a formation of ‘Bullish Flag’ pattern on daily chart. The potential target of this pattern comes to yet another milestone of 9600. This level coincides with the 161% ‘Price Extension’ of the entire rally (6825.80 to 8968.70) from the recent bottom of 7893.80. Thus, we expect the index to continue this northward rally towards 9600, where we would advise traders to start taking some money off the table,” Angel Broking said a research report.
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“Going ahead, it would merely be a formality to hit new record highs. We continue with optimistic stance on the market and expect projected level of 9600 (target of ‘Bullish Flag’ pattern) quite soon. For the coming session, the support zone of 9400 – 9377 remains unchanged,” said Sameet Chavan (Chief Analyst- Technical & Derivatives) Angel Broking, in another research report.