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Technical Outlook

Equity benchmarks extended losing streak over third consecutive session amid mixed global cues. The Nifty concluded weekly expiry session at 17757, down 181 points or 1%. In the coming session, the index is likely to open on a subdued note tracking weak global cues. The formation of lower high-low signifies corrective bias. Hence intraday pullback towards 17775-17802 should be used to create short position for target of 17686

Historically, within major rallies to the tune of measuring 30% up move, the intermediate corrections have been arrested within 38.2% retracement of respective rally. Looking at 22 months history, we don’t expect Nifty to retrace more than 38% of past one month rally (16400-18350). Thereby, in current scenario we expect 17600-17400 zone would act as key support that coincides with 100 days EMA placed at 17382. Hence, extended breather from here on should not be construed as negative. Instead, dips should be capitalised on as an incremental buying opportunity to ride the next leg of up move

Nifty Weekly Chart

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