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Technical Outlook

Equity benchmarks endured its winning streak over fifth consecutive session tracking mixed global cues. The Nifty concluded weekly expiry session at 16605, up 84 points or 0.5%. In the coming session, index is likely to open on a positive note tracking firm global cues. We expect the index to consolidate with positive bias while maintaining higher highlow. Hence, after a positive opening use intraday dip towards 16540-16572 for creating long position for the target of 16663

The formation of higher high-low coupled with sustenance above 200 days EMA and across sector participation signifies inherent strength that makes us confident to revise target to 17000 in coming weeks as it is 61.8% retracement of April-June decline. However, the move towards 17000 would not be in a liner manner as bouts of volatility owing to U.S Fed meet and monthly expiry in coming week amid overbought conditions of daily stochastic oscillator (at 95). Only a decisive close below previous session low (16500) would lead to a breather, else continuation of upward momentum. Hence, dips should be capitalised as incremental buying opportunity

Nifty Daily Chart

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