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Technical Outlook

Equity benchmarks extended losses over second consecutive session tracking weak global cues and Rupee making new lows. The Nifty ended Wednesday's session at 17630, down 89 points or 0.5%. In the coming session, index is likely to witness a negative opening tracking weak global cues. Formation of lower high- lower low signifies corrective bias. Hence, use intraday pullback towards 17635-17662 for creating short position for the target of 17551

Going ahead, we expect prolongation of consolidation in the broader range of 18000- 17300 ahead of RBI Policy and monthly expiry. Rupee movement will also be a key monitorable which could lead to sectoral churn as defensives are attractively priced while rate sensitives could be vulnerable for temporary profit booking after sharp rally recently. Structurally, strong support for the Nifty is placed at 17300 which we do not expect to breach as it is 80% retracement of recent 11 sessions rally (17166-18096) coincided with 50 days EMA placed at 17352

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