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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking firm global cues. The Nifty climbed 143 points 0.8% to settle the Tuesday’s session at 18268. In the coming session, index is likely to open on a subdued note tracking muted Asian cues. We expect, index to stage pullback after initial dip and trade with a positive bias amid elevated volatility ahead of monthly derivative expiry. Hence, use dip towards 18223-18252 for creating long position for target of 18339

The decisive close above previous session high (18240) confirms pause in downward momentum. Going ahead, we expect index to form a higher base above the psychological mark of 18000 coincided with 20 days EMA that would pave the way to retest all-time high of 18600 in coming weeks. Key point to highlight since May 2020 is that, on eight out of ten occasions supportive efforts emerged in the vicinity of 20 days EMA. In the current scenario as well index has been bouncing from 20 days EMA over past three sessions, highlighting elevated buying demand.

Nifty Weekly Chart

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