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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking mixed global cues. The Nifty concluded weekly expiry session at 17893, up 22 points. In the coming session, index is likely to open on a negative note tracking subdued global cues. After initial blip, we expect buying demand to emerge from 17800 mark. Thus, intraday dip towards 17795-17822 should be used to create intraday long positions for target of 17911

Key point to highlight is that, since CY20 intermediate corrections have not lasted for more than 10 weeks in a row. In current scenario, index has approached the 10th week of correction wherein it retraced 61.8% of preceding nine weeks rally (16748-18887). The maturity of price and time wise correction makes us believe the stage has been set to resolve out of upper band of ongoing consolidation coincided with budget day high and gradually head towards 18300 in coming weeks as it is 61.8% retracement of entire correction since Jan-23 (18887-17353). Thus, elevated volatility from hereon should not be construed as negative, instead dips should be capitalised to accumulate quality stocks.

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