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Technical Outlook

Equity benchmarks extended correction over third consecutive session tracking muted global cues. The Nifty lost 303 points or 1.7% to end Monday’s session at 17214. In the coming session, index is likely to open on a flat note tracking mixed global cues. The formation of lower high-low signifies corrective bias. Hence use intraday pullback towards 17300- 17330 for creating short position for target of 17213

The lack of faster retracement of either side signifies prolonged consolidation (17500- 16800) amid stock specific action that would make market healthy. Over past three sessions, index has retraced 61.8% of preceding five sessions up move (16836-17794), indicating lack of faster retracement. Going ahead, we expect buying demand to emerge around key support zone of 17000-16800. Thus, extended correction from hereon should not be construed as negative instead dips should be capitalised to accumulate quality stocks. In the process, stock specific action would prevail as the earning season progresses

Nifty Daily Chart

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