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Technical Outlook

Equity benchmark concluded Wednesday’s session on a negative note tracking weak global cues. The Nifty settled at 14549, down 265 points or 1.8%. In the coming session, volatility would remain high owing to monthly derivative expiry. In the process, breach of Wednesday’s low (spot14535) would lead to extended correction, else pullback option would remain open. Index forming lower high-low in daily chart so immediate bias remain corrective. Hence, use intraday pullback towards 14585-14608 to create short position for target of 14496.

Going ahead, intermediate support of 14400 would be the key level to watch, as holding above the 14400 (on a closing basis) would keep pullback option open. Only the decisive close below 14400 would result into breach of rhythm of not correcting more than 9% since May 2020 and lead to extended correction, else continuance of stock specific action amid rotational sectoral churn to continue. Therefore, dips should be capitalised to accumulate quality large cap and mid-caps in a staggered manner.

Nifty Daily Chart

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