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Technical Outlook

Equity benchmarks extended correction over second consecutive week as Nifty skidded 2.9% to end the truncated week at 17102. In the coming session, we expect index to trade with a positive bias amid elevated volatility ahead of Union Budget. Hence use intraday dip towards 17178-17205 for creating long position for target of 17292

Key thing to monitor in the next week is that, Nifty holding above 16800 post Union Budget 2022 amid oversold condition would open the doors for technical pullback towards 17600. Our key observations are as follows: a) Time wise, since May 2020 index has not closed negative for more than two successive weeks. With two weeks of losses behind us, index is poised for a technical pullback b) Despite elevated global volatility, Nifty managed to hold the key support of 16800 c) The Bank Nifty has been outperforming the benchmark Nifty since beginning of this year and also within ongoing corrective phase. A revived traction in banking stock would drive Nifty higher as Bank Nifty carries 36% weightage in Nifty

Nifty Daily Chart

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