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Technical Outlook

Equity benchmarks endured its winning streak over third session in a row. The Nifty ended Tuesday’s session at 16341, up 62 or 0.4%. In the coming session, index is likely to open gap up tracking firm global cues. We expect index to trade with a positive bias while maintaining higher high-low formation and likely to challenge 200 dma placed at 16550 levels. Hence, after a positive opening use intraday dip towards 16440-16466 for creating long position for the target of 16555.

The formation of higher high-low supported by across sector participation which makes us confident to reiterate our positive stance and expect the Nifty to gradually head towards 16600 in coming weeks as it is confluence of 50% retracement of CY22 decline (18350- 15183) coincided with 200 days EMA around 16550. In the process, bouts of volatility cannot be ruled out owing to volatile global cues. Thus buying on dips would be the prudent strategy as we believe key support for the Nifty is placed at 15700 being 50% retracement of current up move (15183- 16287) placed around 15700.

Nifty Daily Chart

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