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Technical Outlook

Equity benchmarks concluded monthly expiry session on a subdued note tracking mixed global cues. The Nifty settled the session at 17618, down 93 points or 0.5%. In the coming session, index is likely to witness gap down opening tracking weak global cues. The breach of Tuesday’s low (17620) indicates extension of corrective phase. Hence, post gap down opening use intraday pullback towards 17520-17545 for creating fresh short position for target of 17430.

The lack of faster retracement on either side signifies extended consolidation in the range of 17900-17400 in coming sessions. Over past four sessions index has retraced merely 61.8% of preceding four sessions up move (17326-17948), indicating slower pace of retracement. Thus prolongation of consolidation amid stock specific action would continue. Meanwhile, upside will be capped at 17900. Structurally, the formation of higher peak and trough on the weekly chart signifies positive trend is still intact. We expect ongoing corrective phase to get anchored around 17400 mark

Nifty Daily Chart

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