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Technical Outlook

Equity benchmark recouped last session’s losses and settled the session on an optimistic note. The Nifty gained 166 points to settle the session at 18256. In the coming session, index is likely to open on a muted note tracking subdued global cues. After initial dip, we expect index to find support around 18200 mark and trade with positive bias. Hence, use intraday dip in May future towards 18180- 18215 to create intraday long positions for target of 18298 with a stoploss of 18143.

Going ahead, we reiterate our positive stance and expect index to challenge the immediate resistance of 18300. Subsequently, a decisive close above 18300 would open the door for extension of up move towards 18500 in coming week. Key point to highlight is that, past six weeks sharp up move of 8.5% hauled daily and weekly stochastic in overbought conditions (placed at 90 and 91, respectively), indicating possibility of couple of days breather at higher levels can not be ruled out which would make market healthy and pave the way for next leg of up move. Thus, any dip from hereon should be capitalised to accumulate quality stocks.

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