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Technical Outlook

Equity benchmarks edged lower amid escalating concern over rising COVID19 cases in India. Nifty concluded Tuesday’s session at 14497, down 138 points or 0.9%. In the coming session, stock specific action would remain in focus amid ongoing consolidation. Hence, use intraday dip towards 14500-14525 to create long for target of 14614.

Going ahead, we expect index to prolong the ongoing consolidation in the broader range of 14900-14400 which would make market healthy and pave the way towards 15400 in coming months. Therefore, extended breather from here on should be capitalised as an incremental buying opportunity as we do not expect index to breach the key support threshold of 14200. We believe, the index is undergoing healthy retracement as over past three sessions it retraced 61.8% of preceding five sessions ~900 points up move which is larger in magnitude compared to early March rally of 868 points. The elongated of up move followed by healthy retracement, signifies robust price structure that augurs well for rejuvenation of upward momentum.

Nifty Daily Chart

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