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Technical Outlook

Equity benchmark pared initial gains and concluded Monday’s session on a flat note as the Nifty settled tad above Friday’s close, at 15693. In the coming session, index is opening on a positive note tracking firm global cues. We expect Nifty to maintain a higher high-low formation. Hence, use intraday dip towards 15750-15775 to create long for target of 15863.

The shallow price correction along with prolonged time consolidation helped index to approach maturity of price/time wise correction. During ongoing consolidation index retraced its May rally by just 38%, indicating shallow retracement. Time-wise, the index has not corrected for more than three consecutive weeks in a row since April 2020. We expect it to maintain the same rhythm by arresting ongoing corrective phase in coming weeks as the index has already corrected over past two weeks. Hence, dips should be capitalized as incremental buying opportunity amid Q1FY22 earning seasons.

Nifty Daily Chart

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