Equity benchmarks concluded weekly derivative expiry session on a buoyant note amid mixed Asian Cues - ICICI Direct
Technical Outlook
Equity benchmarks concluded weekly derivative expiry session on a buoyant note amid mixed Asian Cues. The Nifty gained 235 points to settle the session at 17401. In the coming session, the index is likely to open on a muted note tracking mixed Asian cues. We expect index to trade with a positive bias while maintaining higher highlow formation. Hence, use dip towards 17332-17355 for creating long position for target of 17443. Key point to highlight is that, once again buying demand emerged after 10% correction. Thereby, maintaining the rhythm of not correcting for more than 9- 10% since May 2020, indicating structural bull trend is intact. Going ahead, we expect index to resolve higher and head towards 17600 as it is confluence of 50 days EMA coincided with 50% retracement of current decline (18210-16782). A decisive close above past four sessions high signifies pause in downward momentum and augurs well for further pullback. Thus, dips should be capitalised on to accumulate quality stocks as we do not expect Nifty to breach key support threshold of 16900-16700.
Nifty Weekly Chart
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