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Technical Outlook

Equity benchmarks concluded Tuesday’s session on a subdued note tracking muted Asian cues. The Nifty ended the session at 17889 down 40 points or 0.2%. In the coming session, the index is likely to open on a flat note amid muted Asian cues. We expect, index to trade with a positive bias amid elevated volatility ahead of weekly expiry. Hence, use dip towards 17870-17905 for creating long position for target of 17987

The lack of faster retracement on either side signifies prolonged consolidation that would help index to forma higher base while sustaining above Friday’s panic low 17613. In the process, stock specific action would prevail as we expect broader market to relatively outperform amid progression of Q2FY22 earning season. Key point to highlight since May 2020 is that, time wise index has not corrected for more than two to three consecutive weeks. In current scenario, index has already corrected in past two weeks. Hence, ongoing corrective phase should not be construed as negative, instead dips should be capitalised on to accumulate quality stocks.

Nifty Daily Chart

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