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Technical Outlook

Equity benchmarks extended gains over second consecutive session tracking pullback back in global markets. The Nifty settled Wednesday’s session at 16345, up 332 points or 2.1%. In the coming session, index is likely to open gap up amid strong global cues. We expect it to continue with its last two sessions pullback. while maintaining a higher high-low. Hence after a positive opening use dips towards 16520-16552 for creating long position for target of 16638.

Key point to highlight since October 2021 is that, each major corrective phase subsequently got retraced by at least 50%. Taking cognizance from the historical evidences, we expect ongoing pullback to extend towards 50% retracement (placed around 16800) in a gradual manner. In the process, volatility would remain elevated ahead of Fed meeting amidst ongoing geopolitical concerns. Therefore, any dip from hereon should be used as buying opportunity to ride next leg of up move.

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