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Technical Outlook

Equity benchmarks extended breather over second consecutive session amid subdued global cues. The Nifty concluded Wednesday’s session at 15635, down 105 points or 0.7%. In the expiry induced volatile session, we expect stock specific action to prevail amid positive bias. Hence, use intraday dip towards 15600-15625 to create long for target of 15713.

We believe, temporary breather from here on would make market healthy by cooling off the overbought conditions and gradually pave the way to head towards our earmarked target of 16100 in June 2021. We believe the move toward 16100 would not be linear as bouts of volatility owing to overbought condition cannot be ruled out. Therefore, buy on dips in quality large caps would be the prudent strategy to adopt at current juncture as we believe strong support is placed at 15200. The formation of higher high-low on the larger degree chart backed by improving market breadth signifies robust price structure that augurs well for durability of ongoing up move.

Nifty Daily Chart

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