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Technical Outlook

Equity benchmarks continued its winning streak over fourth consecutive session tracking mixed global cues. The Nifty settled Wednesday’s session at 17925, up 120 points or 0.7%. In the coming session, the index is likely to witness gap down opening tracking weak global cues. We expect volatility to remain high owing to weekly derivative expiry. Hence use intraday pullback towards 17900- 17930 for creating short position for target of 17813

Key point to highlight is that, over past twelve sessions index has rallied 1530 points that hauled daily stochastic oscillator in overbought territory (placed at 96), indicating couple of days breather can not be ruled out. However, such a breather should not be construed as negative instead dips should be capitalised as incremental buying opportunity On expected lines, Bank Nifty resolved higher post falling channel breakout and surpassed December 2021 high of 37580, highlighting rejuvenation of upward momentum. We believe, the extension ongoing up move in Bank Nifty would drive Nifty higher as it carries 35% weightage in Nifty.

Nifty Weekly Chart

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