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Technical Outlook

Equity benchmarks took a breather after past two sessions pullback amid muted global cues. In the coming session, index is likely to witness gap down opening tracking weak global cues owing to Fed rate hike. Formation of lower high- lower low signifies corrective bias. Hence, use intraday pullback towards 17688-17712 for creating short position for the target of 17602 The index has been consolidating in the broader of 18000-17300 amid stock specific action tracking elevated volatility ahead of outcome of US Fed meet. The lack of faster retracement on either side signifies prolonging of consolidation. The ongoing healthy consolidation has helped index to cool off overbought conditions (daily and weekly stochastic oscillator cooled off to 43 and 58, respectively). Thus, extended breather should be capitalised on to accumulate quality stocks to ride next leg of up move towards January 2022 high of 18300. 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 17349

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