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Technical Outlook

Equity benchmark started the week on a buoyant note tracking upbeat Asian Cues. The Nifty settled Monday’s session at 15885, up 122 points or 0.8%. In the coming session, the index is likely to open on a flat note tracking muted Asian cues. We expect elevated buying demand to emerge from intraday support of 15800. Hence use intraday dips towards 15835-15855 to create long for target of 15945.

The index has retraced more than 80% of past seven sessions decline (15962-15513) in just three sessions, highlighting inherent strength. Thus, a decisive close above upper band of consolidation placed at 15950 would lead to faster retracement. The faster pace of retracement along with multi sector participation makes us believe index would resolve out of ongoing consolidation (15950- 15500) and open the door for our earmarked target of 16300. Thus a breach above upper band of consolidation (15950) would dictate directional bias and lead index gradually to 16300 in coming weeks, else extended consolidation with positive bias amid stock specific action.

Nifty Daily Chart

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