Equity benchmarks extended breather amid global volatility - ICICI Direct
Technical Outlook
Equity benchmarks extended breather amid global volatility and settled the week 17530, down 1.7% ahead of Fed meet outcome due in next week. In the coming session, index is likely to open on a flat note tracking muted global cues. We expect index to rebound post initial blip as strong intraday support placed at 17400. Hence, use intraday dip towards 17432-17464 for creating long position for the target of 17549
Going ahead, we expect Nifty to consolidate ahead of FED event and gradually head towards January 2022 high of 18300 by October while strong support of 17300 is expected to be held. The index is undergoing healthy consolidation which will help to cool off the overbought conditions (daily and weekly stochastic oscillator cooled off to 36 and 56, respectively) ahead of U.S. Fed event in the upcoming week. Empirically, secondary correction in an integral part of the bull market that paves the way for next leg of up move. Thus, ongoing breather should not be construed as negative, instead dips should be capitalized to accumulate quality stocks
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