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Technical Outlook

Equity benchmarks extended gains over second consecutive session amid elevated global volatility. The Nifty gained 135 points or 0.8% to settle Monday's session at 16794. In the coming session, index is likely to witness gap down opening tracking subdued global cues. Over past three sessions Nifty has been facing stiff resistance in the vicinity of 16800. Thus post gap down opening, use pullback towards 16740- 16770 should be used to create short position for target of 16653

As per change of polarity concept earlier support of 16800 is now acting as an immediate resistance for the Nifty over past three sessions. Going ahead, only a decisive close above 16800 along with cool off in VIX and crude oil prices will add fuel to the ongoing pullback rally towards 17200 as it is the 61.8% retracement of February decline (17795-16203), placed at 17186. Meanwhile, breach below Monday’s low of 16356 on a closing basis would lead to extended correction towards 16200.

Nifty Daily Chart

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