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Technical Outlook

Equity benchmarks concluded volatile session on a flat note. The Nifty settled Tuesday’s session at 17007, down 9 points. In the coming session, index is likely to witness gap down opening tracking weak global cues. Despite ongoing volatility, supportive efforts to emerge around 200 days EMA placed around 16880. Hence, use intraday dip towards 16805-16835 for creating long position for the target of 16922. The lack of follow through strength signifies extended breather. Key point to highlight is that, past two weeks 1150 points decline hauled daily and weekly stochastic oscillator in oversold territory with a reading of 6 and 20, respectively indicating possibility of technical pullback from oversold conditions cannot be ruled out. Going ahead, we expect supportive efforts to emerge around key support zone of 16800-16700 amid elevated volatility ahead of Monthly expiry week coupled with RBI policy. Meanwhile, on the upside, 17500 would act as immediate hurdle as it is 50% retracement of past two weeks decline (18096-16942).

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