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Technical Outlook

Equity benchmarks edged higher tracking positive global cues. The Nifty settled the week at 16719, up 4.2%. In the coming session, index is likely to open on a subdued note tracking muted global cues. The formation of higher high-low signifies elevated buying demand. Hence, use intraday dip towards 16640-16672 for creating long position for the target of 16763

The current 10% rally is longer in magnitude compared to intermediate rallies off April high of 18114. The elongation of rallies supported by across sector participation signifies inherent strength that makes us confident to revise target to the psychological mark of 17000 for coming weeks as it is 61.8% retracement of April-June decline (18114- 15183). However, we believe, the move towards 17000 would not be in a linear manner as bouts of volatility cannot be ruled out owing to U.S Fed meet and monthly expiry in coming week amid overbought conditions of daily stochastic oscillator (currently placed at 95). Thus, temporary breather from hereon should not be construed as negative instead dips should be capitalised as incremental buying opportunity

Nifty Daily Chart

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