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Technical Outlook

Equity benchmark inched upward over third session in a row despite weak global cues. The Nifty settled Wednesday’s session at 17814, up 44 points or 0.25%. In the coming session, index is likely to open on a subdued note tracking mixed global cues. We expect volatility to remain high owing to monthly derivative expiry. Hence, use intraday pullback in April future towards 17730-17763 to create intraday long positions for target of 17847 with a stoploss of 17693.

The index has formed a higher base above 17500 mark which have paved the way to resolve higher and gradually head towards 18100 in coming weeks. In the process, bouts of volatility owing to monthly expiry and upcoming Fed event can not be ruled out. Thus, we believe Bank Nifty will be the key monitorable as sustaining above the psychological mark of 43000 will provide impetus to resolve higher (as Bank Nifty carries 37% weightage in Nifty). Structurally, the index has pulled back after witnessing slower pace of retracement above 200 days EMA placed at 17500, indicating inherent strength.

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