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Technical Outlook

Equity benchmarks extended gains over fourth consecutive session tracking buoyant global cues. Nifty rose 119 points or 0.8% to settle at 14942. In the coming session, Nifty future is likely to open with a negative gap tracking subdued global cues. However, post gap down opening we expect index to witness a pullback, hence use intraday dip towards 14735-14757 to create long for target of 14848.

The index has resolved out of past two weeks double bottom formation (14900-14400), indicating resumption of primary up trend. Thereby, we reiterate our positive stance on the market and expect the Nifty to eventually head towards lifetime high of 15400 in May 2021. However, a move towards 15400 would not be linear in nature, as bouts of volatility owing to escalating concerns over Covid-19 2nd wave. Therefore, intermediate dips toward 14700-14600 should be capitalised on as an incremental buying opportunity in quality large cap and midcaps.

Nifty Weekly Chart

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