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Technical Outlook

Equity benchmarks concluded weekly expiry session on a subdued note as Nifty dropped 152 points or 1% to settle Thursday’s session at 15728. In the coming session, index is likely to witness gap down opening tracking weak global cues. However, we expect, index to attempt a pullback post initial dip. Hence, use intraday dip towards 15610-15632 to create long for target of 15723.

Key point to highlight is that, the index has failed to sustain above upper band of contracting range (15900) on fourth occasions during ongoing consolidation. However, formation of subsequent higher lows during ongoing consolidation (15900- 15500) exhibits buying demand at elevated support base. Key point to highlight is that, the last decline of 280 points was narrower compared to mid-June decline of 450 points, highlighting contraction of trading range. Therefore, index need to sustain above 15600 levels to keep ongoing contraction pattern intact, else extended correction amid stock specific action as we enter the Q1FY22 earning season.

Nifty Daily Chart

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