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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking firm global cues and cool off in crude oil prices. The Nifty concluded Tuesday’s choppy session at 17325, up 103 points or 0.6%. In the coming session, index is likely to witness gap up opening tracking buoyant global cues. We expect index to endure positive momentum while maintaining higher highlow formation. Hence, use intraday dips towards 17430-17462 for creating long position for target of 17548

Structurally, despite elevated crude prices and hawkish Fed stance, index managed to form strong base around 17000 and 50 days EMA, highlighting structural improvement that has set the stage to resolve higher. Key point to highlight is that the index has finally managed to close above the upper band of falling ‘Andrews’ Pitchfork’ that augurs well for extension of ongoing up move gradually towards 18000 in April. Hence, dips should be capitalised on as incremental buying opportunity as we do not expect Nifty to breach the key support of 16800-16700.

Nifty Daily Chart

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