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Technical Outlook

Equity benchmarks extended its record setting spree over second consecutive session and concluded Monday’s session at 15583, up 147 points or 1%. In the coming session, the index is likely to open on a positive note amid mixed Asian cues. We expect Nifty futures to trade with a positive bias while maintaining higher high-low formation. Hence, use intraday dip towards 15565- 15590 to create long for target of 15679.

We expect, index to endure its northbound journey and head towards 15700 levels in coming weeks as it is 123.6% external retracement of FebruaryApril correction (15432-14151). The current rally has been broad based backed by the improving market breadth as currently 88% components of Nifty 500 index are trading above 50 days EMA compared to April reading of 60%. This augurs well for durability of ongoing up trend. We believe, rejuvenated traction in BFSI, Consumption, IT and Auto would drive index higher as it carries almost 70% weightage in the benchmark index Nifty.

Nifty Daily Chart

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