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Technical Outlook

Equity benchmarks concluded weekly derivative expiry session on a flat note amid elevated volatility. The Nifty ended Thursday’s session at 16683, up 5 points. In the coming session, index is likely to witness gap down opening below Wednesday’s panic low of 16600 tracking weak global cues. The formation of lower high-low signifies corrective bias. Hence, use intraday dip towards 16590-16616 for creating short position for the target of 16502

The index is likely to witness gap down opening below Wednesday’s panic low of 16600 tracking weak global cues, indicating extended correction towards 16100 is likely. Meanwhile, immediate upside is capped at 17100. Thus, for a meaningful pullback materialize, Nifty need to decisively close above past two sessions high of 17100. Else prolonged correction towards 17100. Structurally, a conclusive close below 52 weeks EMA (placed around 16600) would indicate round of extended correction. We believe, strong support for the Nifty is placed at 16100.

Nifty Daily Chart

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