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Technical Outlook

Equity benchmarks concluded Tuesday’s volatile session on a positive note as Nifty gained 46 points or 0.3% to settle at 14684. In the coming session, we expect index to extend the ongoing consolidation with a stock specific action. Over past two sessions, index has been forming long lower shadows, displaying elevated buying demand.

Hence use intraday dip towards 14650-14673 for creating long position for the target of 14764. The lack of faster retracement on either side signifies prolonged consolidation which makes us believe index would extended its ongoing consolidation in the broad range of 14900- 14400 amid stock specific action.

Key point to highlight over past twelve sessions is that, the declines are getting more time consuming and shallower in nature. Meanwhile, rotational sectoral leadership remained in focus, indicating broader market participation. Hence, buying quality large cap and midcap stocks ahead of the upcoming Q4FY21 result season would be the prudent strategy to adopt.

Nifty Daily Chart

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