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Nifty :17322

Technical Outlook

• The index witnessed a roller coaster move as after recovering initial losses Nifty scaled 17490. However, profit booking in the last hour of the session hauled the Nifty lower tracking uncertainty over geopolitical issues. As a result, daily price action formed a bear candle carrying higher high-low, indicating a breather after Tuesday’s sharp up move

• Going forward, occurrence of faster retracement would be the key monitorable as over past two sessions the index has already retraced 61.8% of preceding eight session’s decline (17794-16810). The faster pace of retracement in the next couple of sessions would confirm rejuvenation of upward momentum. Else, there would be prolonging of consolidation in broader range of 17600-16800 amid stock specific action. Thus, buy on dips strategy should be adopted as we do not expect nifty to breach the key support threshold of 16800. Meanwhile, 17600 would act as immediate resistance as it is confluence of:

• a) 80% retracement of February decline (17794-16809), at 17600

• b) last week’s high is placed at 17640

• Structurally, despite rise in volatility, on multiple occasions elevated buying demand emerged from key support of 16800, highlighting strong base formed at 16800 which we expect to hold in coming weeks as it is confluence of:

• a) 80% retracement of Dec-Jan rally (16410-18350), at 16800

• b) Two months identical low is placed around 16800

• The small cap index witness follow through strength after rebounding from 200 days EMA. We expect, broader market indices to undergo base formation and set the stage for a meaningful pullback in coming weeks. In the coming session, index is likely to open on a positive note amid mixed global cues. Volatility likely to remain high on account of the weekly expiry. We expect Nifty to extend ongoing pullback while maintaining higher high-low formation. Thus, after a positive opening use dip towards 17288-17317 for creating long position for target of 17407

NSE Nifty Daily Candlestick Chart

Nifty Bank: 37954

Technical Outlook

• The daily price action formed a small bear candle as prices faced hurdle at Monday’s falling gap area placed around 38500 levels . Intraday swings measured almost 2400 points highlighting intraday volatility

• Bank Nifty index has been trading in a broad range of 39200 and 36500 over past four weeks now within which it has failed to generate faster retracement on either sides indicating extended consolidation over next few sessions and higher base formation around 36500 level .

• Structurally ongoing consolidation would help index workout of overbought trajectory and set the stage for next leg of upmove towards 39500 levels . Therefore any dip should not be construed as negative rather would present an incremental buying opportunity

• The index has support around 36500 levels being the confluence of the 200 days EMA currently placed at 36080 and the January low is also placed at 36375 levels In the coming session, index is likely to open on a positive note amid mixed global cues . We expect index to extend ongoing pullback while forming a higher high -low formation . We suggest to use intraday dip towards 37850 -37930 for creating long position for target of 38170 , maintain a stop loss at 37740

Nifty Bank Index – Daily Candlestick Chart

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