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Technical Outlook

Equity benchmarks concluded Wednesday’s session on a positive note supported by RBI measures to counter 2nd wave of COVID19. The Nifty gained 121 points or 0.8% to settle at 14618. In the coming session, volatility would remain high owing to weekly expiry. We expect, Nifty to consolidate amid stock specific action. Hence, use intraday dip towards 14687-14712 to create long for target of 14798.

Over past four sessions index has retraced 61.8% of preceding five sessions up move (15044- 14151). The slower pace of retracement highlights healthy consolidation (14900-14400) that would help the index to form a higher base and eventually pave the way towards 15400 in coming months. The slower pace of retracement after ~900 points up move which is larger in magnitude compared to early March rally of 868 points, highlights robust price structure. Therefore, any dip from here on should be capitalised on as an incremental buying opportunity as we do not expect the index to breach key support 14200.

Nifty Daily Chart

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