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Technical Outlook

Equity benchmarks extended its winning streak over third consecutive session. The Nifty ended Wednesday’s session at 14865, up 212 points or 1.4%. In the coming session, index is likely to witness gap up opening tracking firm Asian cues. We expect index to trade with a positive bias amid elevated volatility owing to monthly expiry. Hence, use intraday dip towards 14850-14875 to create long for target of 14964.

Going ahead, a decisive close above Wednesday’s high of 14890 will confirm the breakout from falling channel, leading to acceleration of upward momentum, else extended consolidation with positive bias. Stock specific action would prevail amid progression of Q4FY-21 result season. In the process, we expect broader market would outperform. Key point to highlight is that, past four sessions 740 points up move helped index to retrace more than 80% of preceding 8 sessions decline (14984-14151). The faster pace of retracement signifies structural improvement that augurs well for next leg of up move.

Nifty Daily Chart

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