3166: Hot Stocks | Here's why Vodafone Idea and Indraprastha Gas are bets for the short term
The second week of the new calendar year started on a good note at a fresh record high, a tad below the 14,500 mark last Monday.
Last Friday, there was some profit-booking and the Nifty ended the week below Monday’s opening point.
The bulls are continuing with their stronghold on the market and barring a single day of sharp correction last month, the relentless rally resumed to clock fresh record highs day by day.
In our intra-week commentary, we had mentioned how the '2.30' factor played out well in the last few days. There was a typical pattern when we see some price decline in the first half and buying emerges in the latter half to hit new record highs.
But this winning streak finally got snapped on Friday when the market corrected further after 2-2.30 pm.
Although it is just a one-day activity and still no major damage done, we expect 14,650 to act as an immediate resistance now.
On the daily chart, Nifty closed below 5-day EMA for the first time in the recent past, which is the first sign of weakness.
Hence, this week, the extension of profit-booking cannot be ruled out. The moment we see Nifty sliding below 14,380, the index may slide towards 14,250-14,100 levels.