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Technical Outlook

Equity benchmarks extended its losing streak over eight session in a row. The Nifty settled the Tuesday’s session at 17304, down 89 points. In the coming session, index is likely to open on a subdued note tracking muted global cues. We expect supportive efforts to emerge from lower levels as key support is placed at 17200. Hence, use intraday dips towards 17320-17352 to create intraday long positions for target of 17437 with a stoploss of 17284

The lack of follow through strength above previous sessions high signifies corrective bias. Key point to highlight is that, past eight sessions 880 points decline hauled daily stochastic oscillator in oversold territory (placed at 11), indicating impending pullback. However, to pause the ongoing corrective bias, index need to divisively close above previous session’s high along with improvement in breadth that would consequently open the door for a meaningful pullback towards immediate resistance of 17800 in coming week. Failure to do so will lead to prolonged correction amid global volatility towards immediate support placed around 17200 levels.

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