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Technical Outlook

Equity benchmarks continued to slide downward over a fourth consecutive session amid elevated volatility. The Nifty ended Wednesday’s session at 16356, down 60 points or 0.4%. In the coming session, index is likely to open on a subdued note tracking muted global cues. The formation of lower high-low signifies corrective bias. Hence, use intraday pullback towards 16358-16385 for creating short position for the target of 16271

Going ahead, for a meaningful pullback to materialise index need to form a higher highlow along with a decisive close above previous session high (16514). Else continuance of corrective bias towards 16100 as long as lower high-low is maintained. Meanwhile, current week’s high of 16600 would continue to act as immediate hurdle in coming sessions as it is 61.8% retracement of current decline (16793-16293). Structurally, the lack of faster retracement on either side signifies prolonged consolidation in the broader range of 16600-16100. over past seven sessions index has retraced 50% of preceding 3 sessions up move (15903-16695), indicating slower pace of retracement that makes us confident to retain support base at 16100

Nifty Daily Chart

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