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Technical Outlook

Equity benchmarks extended gains over second consecutive week amid elevated global volatility. The Nifty ended the week at 17784, up 0.6%. In the coming session, index is likely to open on a subdued note tracking mixed global cues. We expect index to hold Friday’s low of 17650 and pose a bounce post initial blip. Hence, use intraday dips towards 17710-17740 for creating long position for target of 17827

The index is resuming uptrend after undergoing healthy retracement post 1100 points rally seen in just six sessions which has helped the index to cool off overbought conditions. Key point to highlight is that, the rallies are getting elongated followed by shallow corrections (not >3% in the ongoing rally), highlighting robust price structure. The current rally is supported by significant improvement in market breadth which makes us confident to believe index will resolve higher towards January high of 18350 in coming weeks. Thus, temporary breather from hereon should be capitalised as incremental buying opportunity as we do not expect strong support of 17400 to be breached.

Nifty Daily Chart

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