Equity benchmarks snapped past ten consecutive sessions up move and ended the weekly derivative expiry session at 11680, down 291 or 2.4%. In the coming session, holding Thursday’s panic low (11661) would keep pullback option open, else extended correction. Hence, intraday dip towards 11680-11705 should be used to create long position for target of 11793.
The sharp decline from overbought territory weighed by across sector sell-off amid weak global cues, signifies pause in upward momentum. However, from here on we believe strong support would emerge at 11450-11550 rang and we do not expect it to breach in coming sessions. Meanwhile, upside will be capped at psychological mark of 12000 which coincides with 123.6% external retracement of September decline (11794-10790), at 12031.
We believe ongoing corrective phase would find its feet around 11450-11550 range as it is a) as per change of polarity concept earlier breakout area of 11500 would now act as immediate support b) 50% retracement of last up move (10790-12025), at 11408.
Nifty Daily Chart
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