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Technical Outlook

Equity benchmarks consolidated in a choppy range and settled the week on a flat to positive note. The Nifty ended the week at 17957, up 0.5%. In the coming session, index is likely to open on a flat note amid volatile global cues. We expect, index to trade with a positive bias while sustaining above key support of 17800. Thus, intraday dip towards 17965-17995 should be used to create intraday long positions for target of 18079

The index has held key support of 17800 on multiple occasions over past three weeks, indicating buying demand at elevated support base of 100 days EMA placed at 17800. Going ahead, holding the 17800 mark will keep positive option open towards upper band of the channel which is placed at 18300. The macro factors that corroborates with our positive stance are as follows:

a)Dollar index breached key support of 103.50 last week, indicating further weakness. b) Rupee has seen sharp appreciation last week as DOLLAR/RUPEE pair has breached year long trendline. c) India VIX closed flat at 15 levels for third week indicating low risk perception by market participants

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