Equity benchmarks recouped some of last session’s losses as the Nifty rose 82 points or 0.7% to end Tuesday’s session at 11522. In the coming session, we expect index to trade with a positive bias and maintain a higher low formation while sustaining above Tuesday’s low of 11442. Hence, intraday dip towards 11480- 11502 should be used to create long position for target of 11588.
Going ahead, we believe sustainability above upper band of consolidation (11550), supported by across sector participation would help index to extend ongoing pullback towards 11800 in coming weeks. Else there would be prolonged consolidation (11550-11100) amid stock specific action.
Key monitorable is that, across sector participation especially in banking stocks as it is bouncing from oversold territory (since constituents of Bank Nifty carry 33% weightage in the benchmark Nifty) would help the index to resolve higher. Meanwhile, IT and pharma sector have been on strong footing throughout this consolidation. Thus, further traction in Bank Nifty would help Nifty to extend pullback.
Nifty Daily Chart
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