Market poised for further rally-Angel Broking

Sensex (17,361) / Nifty (5,178)

Leading stock broker Angel Broking expects that on the downside indices had an immediate support at 16,640 / 4,950 levels for next week and maintains its bullish stance with a stop loss of 4,930 levels.  The initial part of the week witnessed a correction up to 16,578 / 4,944 levels, where buying emerged, pulling the indices beyond the all important resistance levels of 17,361 / 5,182, but was unable to close above it.  The Sensex and Nifty ended with a net gain of 3.8 % vis-a-vis the previous week.

Future Technical Outlook
The ensuing week being truncated, coupled with derivative F&O expiry, markets may remain volatile. On the daily chart, the momentum indicators viz. RSI and Stochastic indicate strength and further upside.  If indices trade and close above 17,414 / 5,200 levels then they are likely to test 17,620 to 17,830 / 5,300 to 5,370 levels.  On the downside 17,100 – 17,000 / 5,100 – 5,050 levels may act support for the markets, the broking house said.

Further it added the prudent strategy would be booking partial profits at higher levels of 17,620 / 5,300. At these levels we may witness sector rotation and stock specific moves.

Source:  IRIS