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Technical Outlook

Equity benchmarks ended volatile session on a flat note as Nifty lost 30 points or 0.2% to settle Wednesday’s session at 17322. In the coming session, index is likely to open on a positive note amid mixed global cues. Volatility likely to remain high on account of the weekly expiry. We expect Nifty to extend ongoing pullback while maintaining higher high-low formation. Thus, after a positive opening use dip towards 17288- 17317 for creating long position for target of 17407

Going forward, occurrence of faster retracement would be the key monitorable as over past two sessions index has already retraced 61.8% of preceding 8 sessions decline (17794-16810). The faster pace of retracement in next couple of sessions would confirm rejuvenation of upward momentum. Else, prolongation of consolidation in the broader range of 17600-16800 amid stock specific action. Thus, buy on dips strategy should be adopted as we do not expect nifty to breach the key support threshold of 16800. Meanwhile, 17600 would act as immediate resistance as it is confluence of: a) 80% retracement of February decline (17794-16809), at 17600 b) Last week’s high is placed at 17640

Nifty Daily Chart

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