Equity benchmark endured its winning streak over fourth consecutive session tracking mixed global cues - ICICI Direct
Technical Outlook
Equity benchmark endured its winning streak over fourth consecutive session tracking mixed global cues. The Nifty settled monthly expiry session at 17915, up 101 points or 0.6%. In the coming session, index is likely to open on a positive note tracking buoyant global cues. We expect, index to endure its northbound journey while maintaining higher high-low formation. Hence, use intraday pullback in April future towards 17980-18012 to create intraday long positions for target of 18096 with a stoploss of 17944
Going ahead, we expect index to resolve higher and gradually head towards 18100 in coming weeks. In the process, bouts of volatility ahead of upcoming Fed event can not be ruled out. Thus, any dip from hereon should not be construed as negative, instead dips should be capitalised to accumulate quality stocks. Our positive view is further validated by following observations:
• The index has formed a higher base after retesting falling channel breakout coincided with 200 days EMA, indicating inherent strength
• The percentage of stocks above 200 days EMA for the Nifty 500 universe have jumped to 47% compared to march end reading of 30%, indicating improvement in broader market participation
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