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Technical Outlook

Equity benchmarks extended losing streak over third consecutive session tracking muted global cues. The Nifty settled Wednesday’s session at 17221, down 104 points or 0.6%. In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect, index to trade with a positive bias while sustaining above 100 days EMA. Hence use dip towards 17295-17320 for creating long position for target of 17409

We believe, the Nifty has undergone a strong base formation around 16800-17000 zone after completing price-wise correction of 10% from life highs of 18600. Currently, index is approaching maturity of time-wise correction as we approach the 9th week of correction, that makes us believe, index would gradually resolve out of upper band of consolidation placed at 17500 and eventually head towards psychological mark of 18000 in coming weeks as it is confluence of: a) 61.8% retracement of entire decline since October high is placed at 16900 b) Implicated target of past two week’s consolidation is placed around 18000

Nifty Weekly Chart

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