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Technical Outlook

Equity benchmarks extended losses for second consecutive session tracking mixed global cues. The Nifty ended Wednesday’s volatile session at 17749, down 37 points or 0.2%. In the coming session, index is likely to open on a subdued note tracking benign global cues. We expect index to consolidate amid positive bias. Meanwhile, volatility to remain high owing to monthly expiry. Hence, use intraday dips towards 17610- 17640 for creating long position for target of 17725.

Going ahead, we expect ongoing breather to find its feet around 17400 mark and undergo base formation amid continuance of sectoral rotation. Over past three sessions index has retraced merely 61.8% of preceding four sessions up move, indicating slower pace of retracement. Meanwhile, it has not corrected for more than 3-4 consecutive sessions since mid- March 2021. In current scenario, as index has already corrected over past two sessions, we believe couple of days breather can not be ruled out. However, such a breather should be used as incremental buying opportunity as the broader positive structure still remain intact

Nifty Daily Chart

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