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Nifty : 17530

Technical Outlook

• The index witnessed a gap down opening (17675-17595) and approached the vicinity of key support of 17400. However, at the fag end supportive efforts emerged from lower band of consolidation coincided with 20 days EMA that helped index to recover some of intraday losses. The daily price action formed a bear candle with lower shadow, highlighting emergence of buying demand in the vicinity of 17400

• Going ahead, we expect index to form a higher base above key support threshold of 17400 and gradually resolve higher towards upper band of consolidation placed at psychological mark of 18000. Key point to highlight during current up move off March low (15671) is that, on couple of occasions index has arrested secondary correction within 61.8% retracement of prevailing up move. In the current scenario as well index maintained the same rhythm as supportive efforts emerged from 61.8% retracement of prevailing up move (17004-18115)

• The formation of higher peak and trough on the larger degree chart signifies the broader positive structure still remains intact. However, due to ongoing global volatility our target of 18350 has been delayed. Therefore, dips from hereon should be used as a buying opportunity to ride next leg of up move

• The broader market indices have taken a breather after five weeks rally. We believe, temporary breather from hereon would make broader market healthy by cooling off overbought conditions. Hence, focus should be on accumulating quality stocks on dip

• Structurally, over past six sessions index retraced less than 61.8% of preceding six sessions up move (17004-18115). The slower pace of retracement signifies inherent strength that makes us confident to retain support base at 17400 as it is 61.8% retracement of current up move (17004-18114), placed at 17428 In the coming session, index is likely to open on a flat note amid positive Asian cues. We expect, index to trade with a positive bias while sustaining above key support of 17400. Hence, use intraday pullback towards 17475-17505 for creating short position for target of 17593

NSE Nifty Daily Candlestick Chart

Nifty Bank: 37747

Technical Outlook​​​​​​​

• The daily price action formed a bull candle as buying demand emerged from near the last Monday’s gap area of (37148-37665) signaling continuation of the last six sessions consolidation after a sharp rally of more than 3500 points in the preceding six sessions

• In the smaller time frame the index has already taken six sessions to retrace just 38 . 2 % of the preceding six sessions up move (35016 -38765 ) . A shallow retracement signals a higher base formation and an overall positive price structure

• Going ahead we expect the index to maintain positive bias and gradually head towards February 2022 high of 39400 levels in the coming weeks

• Buy on dips strategy has worked well during the recent up move, which is likely to continue, hence the current breather of the last five sessions should not be seen as negative instead should be used as buying opportunity as we do not expect Nifty to breach support area of 37100 -36700 being the confluence of the following observations :

• (a)last Monday's bullish gap up area placed around 37100

• (b) The recent breakout area above last two weeks high is placed around 36700 levels

• Among the oscillators the daily stochastic has cooled off from the overbought territory and is currently placed at a reading of 31 signaling supportive effort likely at lower levels in the coming sessions In the coming session, index is likely to open on a flat note tracking mixed global cues . We expect the index to continue with its last six sessions consolidation . Hence use intraday dips towards 37590 -37670 for creating long position for the target of 37930 , maintain a stoploss at 37480

Nifty Bank Index – Daily Candlestick Chart

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