IGI Logo

Technical Outlook

Equity benchmarks concluded monthly expiry session on a positive note. The Nifty settled at 17536 up 121 points or 0.7%. In the coming session, index is likely to witness gap down opening tracking weak Asian cues. The lack of faster retracement signifies weak pullback of recent decline. Hence after a gap down opening use intraday pullback towards 17465-17495 for creating short position for target of 17378

The lack of faster retracement of the last decline signifies weak pullback that makes us believe retest of recent low of 17216 cannot be ruled out. Over past 3 sessions index has retraced 38% of preceding four sessions decline (18210-17216). Since April 2020, there have been three major corrections which measured average 9%. Buying in each of three corrections provided handsome returns for investors as index eventually scaled back to new highs. In current scenario, as Nifty has already corrected 7.5% from life highs of 18600 amid oversold placement of weekly stochastic, we expect markets to maintain this rhythm.

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