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Technical Outlook

Equity benchmarks concluded the monthly expiry session on a flat note as Nifty ended at 17204, down 10 points. In the coming session, the index is likely to open on a flat note amid muted global cues. We expect volatility to remain high owing to monthly derivative expiry. Hence use intraday dip towards 17210- 17240 for creating long position for target of 17329

Going ahead, a decisive close above 17250 levels would lead to acceleration of upward momentum towards 17600 in coming weeks. Failure to do so would lead to prolonged consolidation amid positive bias with stock specific action. In the process, bouts of volatility cannot be ruled out as over past 8 sessions index has retraced 61.8% of preceding six sessions decline (17639-16410), indicating lack of faster retracement on either side. Thus, any dip from hereon should be capitalised on as incremental buying opportunity. Our target of 17600 is based on following observations: a) upper band of downward sloping channel of entire decline since October 2021 high of 18604 b) December 2021 high is placed at 17639

Nifty Weekly Chart

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