Nifty at 9600: It's a good time to book profit, says Angel Broking

Upside in the near term now seems limited, the brokerage says

On the Nifty50 index, 9600 is a reality now as we saw markets making a strong recovery in the latter half of the week. Despite seeing some correction in the early part, we maintained our bullish stance on the market and advised traders to stay with the larger degree up trend. Also, we have been quite vocal about reaching the new milestone of 9600 in the recent past, which has now been proved valid.

Going ahead, we can see continuation of this move; but upside in the near term now seems limited. In last 4 – 5 months, we have not used a word ‘cautious’ even on a single occasion. 
 

Now, we would like to highlight few key observations, which are 1) the 127% Reciprocal retracement of the recent ‘Bullish Flag’ pattern on daily chart is at 9642, 2) The ‘Golden Ratio’ (161% Reciprocal retracement) of the corrective move from 8968.70 to 7893.80 is at 9624 and most importantly, 3) The ‘Multi-year Price Extension’ (127% of 2252.75 to 6338.50 from 4531.15) is at 9720. 

All these key ratios are converging in a band of 100 points i.e. 9620 – 9720 and hence, looking at these evidences, we would advise traders to start taking some money off the table.

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Excerpted from Angel Broking Weekly Review Report