IGI Logo

Technical Outlook

Equity benchmarks concluded Wednesday’s session on a positive note tracking firm Asian cues. The Nifty ended at 17167, up 184 points or 1%. In the coming session, the index is likely to open on a subdued note tracking mixed global cues. We expect index to consolidate amid elevated volatility owing to weekly derivative expiry. Hence, use dip towards 17085-17117 for creating long position for target of 17198.After a sharp fall seen over past couple of sessions, intraday chart is suggesting contraction of volatility which is taking a shape of a triangulation pattern with higher low formed over past two sessions.

The Higher base formation above key support threshold of 16800 indicates dwindling of downward momentum that will set the stage to extend the ongoing pullback towards 17600 levels. Thus, dips should be capitalised on to accumulate quality stocks as we do not expect Nifty to breach key support threshold of 16900-16700. We believe, 17600 would continue to act as immediate resistance as it is 50 days EMA coincided with 50% retracement of current decline.

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer