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Technical Outlook

Equity benchmarks endured its winning streak over third consecutive session tracking firm global cues amid cool off in crude oil and VIX. Further, market sentiment boosted by the state election result. The Nifty concluded weekly expiry session at 16595, up 250 points or 1.5%. In the coming session, index is likely to open on a negative note tracking muted global cues. We believe, retracement of past three session sharp up move will make market healthy. Thus, after an initial blip we expect buying demand to emerge around intraday support of 16400. Hence, use dips towards 16430-16460 for creating long position for target of 16547

Going ahead, 16800 would be the key level to watch as a decisive close above 16800 would open the door for next leg of up move towards 17200 in coming weeks. Else couple of days breather cannot be ruled out after past three sessions ~1100 points sharp up move. Thus any dip from hereon should not be construed as negative. Instead it should be capitalized as buying opportunity.

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