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Technical Outlook

Equity benchmarks continued to drift downward amid rising concerns over global uncertainty. Nifty settled the volatile session at 17043 levels down 111 points or 0.65%. In the coming session, index is likely to open on a positive note tracking recovery in the global markets. In tandem with global peers, we expect Nifty to witness bounce from oversold territory and trade with a positive bias. Hence, use intraday pullback towards 17070-17102 to create intraday long positions for target of 17187 with a stoploss of 17030.

The formation of lower high-low after breaching the key support of 17200 signifies prolonged corrective bias. Key point to highlight is that, past four weeks 6% decline hauled daily and weekly stochastic oscillator in oversold territory (currently placed at 11 and 20, respectively). However, to pause the ongoing corrective bias index need to decisively close above previous session’s high 17225. failure to do so would lead to extended correction towards 16800. Meanwhile, on the upside 17600 would act as key hurdle as it is confluence of 200 days EMA coincided with current week’s high.

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