Equity benchmarks edged higher tracking global recovery post U.S. Fed meet outcome - ICICI Direct
Technical Outlook
Equity benchmarks edged higher tracking global recovery post U.S. Fed meet outcome. The Nifty concluded derivative expiry session at 16930, up 288 points or 1.7%. In the coming session, index is likely to witness gap up opening above psychological mark of 17000 on the back of firm global cues. We expect index to endure its winning streak while maintaining higher high-low. Hence, use intraday dip towards 17090-17122 for creating long position for the target of 17207.
The rallies are now getting bigger along with shallow correction, indicating structural improvement that makes us confident to upgrade target from 16600 to 17500 for coming months while 16500 remains strong support. Our constructive bias is further validated by following observations: a) Since October 2021 peak of 18600, on two occasions post falling channel breakout Nifty has retraced 80% of preceding corrective phase. At current juncture, similar breakout has panned out and we expect Nifty to maintain the same rhythm. B) Since 2008, on six occasions index has formed durable bottom after % of stocks above 200 DMA (Nifty 500 universe) has touched the extreme low reading below 15.
Nifty Daily Chart
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