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Technical Outlook

Equity benchmarks concluded Tuesday’s session on a flat note amid mixed global cues. Nifty ended the session at 15740, down 12 points. In the coming session, we expect Nifty futures to trade with a positive bias as formation of lower shadow over past couple of sessions highlights elevated buying demand. Hence, use intraday dip towards 15690-15715 to create long for target of 15798.

We reiterate our constructive stance on the market and expect Nifty to eventually head towards target of 16100 in June 2021. We believe, the move toward 16100 would not be linear in nature as bouts of volatility owing to overbought condition of daily and weekly stochastic oscillator (currently placed at 96 and 88, respectively) cannot be ruled out. Thus, temporary breather from here on should be capitalised on as incremental buying opportunity as we do not expect the index to breach the key support of 15200 levels. The rejuvenation of market breadth signifies inherent strength that makes us confident to retain support base at 15200.

Nifty Daily Chart

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