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Technical Outlook

Equity benchmarks endured their record setting spree over fifth week as Nifty scaled to fresh all time high of 17340. The Nifty settled the week at 17324, up 3.7%. In the coming session, the index is likely to open on a positive note amid firm global cues. we expect the index to trade with positive bias while maintaining higher high-low. Hence after a positive opening use intraday dips towards 17310-17340 to create long for target of 17427.

The formation of higher peak and trough supported by across sector participation signifies inherent strength that makes us confident to reiterate our positive stance and expect Nifty to head towards our revised target of 17600 in September 2021. However, the upward journey will be nonlinear and buy on declines strategy should work well as the bouts of volatility at higher levels cannot be ruled out after past five week’s 12% rally. In upcoming truncated week, any temporary breather should be capitalised to accumulate quality stocks as over past 15 months buying on declines strategy has worked well for equity investors.

Nifty Weekly Chart.

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