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Technical Outlook

Equity benchmarks continued with its winning streak backed by firm global cues and scaled to a fresh all time high of 14869. The Nifty ended the session at 14790, up 142 points or 1%. In the coming session, volatility would remain high owing to weekly derivative expiry session. However, we expect the Nifty to maintain its upward momentum.

Hence, use intraday dip towards 14710-14735 to create long position for the target of 14828 The across sector participation backed by strong market breadth makes us believe, index would endure its northbound journey towards our revised target of 15000 in coming sessions. In the process, we expect broader market to relatively outperform as Nifty midcap and small cap indices witnessed faster pace of retracement.

Over past three sessions index has rallied more than 1270 points which hauled daily stochastic oscillator in overbought territory (at 89), indicating couple of days breather at higher levels cannot be ruled out. However, such a breather should be capitalised on as incremental buying opportunity.

Nifty Daily Chart

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