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Technical Outlook

Equity benchmarks extended breather over second consecutive session amid mixed global cues. The Nifty concluded the session tad above Tuesday’s close, at 15576. In the coming session, index is likely to witness gap up opening tracking firm global cues. We expect, index to trade with positive bias amid expiry induced elevated volatility. Hence, use intraday dip towards 15625- 15650 to create long for target of 15739

The broad-based participation backed by improving market breadth signifies inherent strength that makes us reiterate our positive stance and expect the Nifty to challenge the 15700 mark in coming sessions. We believe the ongoing breather amid stock specific action would help the index to cool off overbought condition of daily stochastic oscillator (currently at 84) formed due to past 12 session’s 1070 points rally and make market healthy. Meanwhile, we expect broader market to endure its relative outperformance. The formation of higher high-low on the larger degree chart signifies elevated buying demand that makes us confident to retain support base at 14900.

Nifty Daily Chart

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