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Technical Outlook

Equity benchmarks eked out gains amid range bound session. The Nifty settled Tuesday’s session at 15869, up 57 points or 0.4%.In the coming session, index is likely to open on a soft note tracking muted global cues. We expect Nifty futures to regain upward momentum after initial decline and trade with a positive bias. Hence, use intraday dip towards 15790-15815 to create long for target of 15898.

Nifty has gained 12% from late April lows over eight weeks leading it into overbought trajectory. As index approaches psychological mark of 16000, intermediate bouts of volatility should not be seen as negative. We rather recommend to stick to buying on declines during such episodes of rise in volatility, as we observe elevated buying demand around 15500 over two weeks. While IT and Reliance led the gains recently, Banking index has undergone healthy consolidation and poised at key support. We believe, Banknifty should protect downsides for index in case of profit booking in recently run up stocks.

Nifty Weekly Chart

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