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Technical Outlook

Equity benchmarks extended correction over second consecutive session tracking weak global cues owing to jitters over steeper interest rate hikes by the US Fed. The Nifty ended the week at 16954, down 1.3%. In the coming session, index is likely to witness gap up opening tracking firm global cues. Nifty is once again staging pullback from key support of 200 days EMA. Hence, after a positive opening use dip towards 17015- 17042 for creating long position for the target of 17129

The index has been witnessing lack of faster retracement as over past thirteen sessions index has retraced 50% of preceding 19 sessions rally (15671-18114), indicating extended consolidation in the broader range of 17500-16800. Going ahead, only a decisive close below 16800 would lead to extended correction, else prolonged consolidation. Meanwhile, 17500 will continue to act as immediate resistance for the Nifty as it is confluence of: A) Last week’s falling gap area (17475-17238) B) 50% retracement of April decline (18114- 16825).

Nifty Daily Chart

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