IGI Logo

Technical Outlook

Equity benchmarks extended losses on Monday, as selling pressure intensified across sectors. The Nifty settled 1.96% down at 17416.50. In the coming session, the index is likely to open on a negative note tracking weak global cues. We expect the intraday pullback in the index to be short lived as forming lower high-low. Hence, use pullback 17460-17485 for creating.

short position for target of 17371.Key observation is, over past 20 months’ bull market, there have been three major corrections which measured average 9%. Currently, Nifty has already corrected 7 from life highs of 18600. Buying in each of these corrections provided handsome returns for investors as index eventually scaled back to new highs post such corrections. As we expect markets to maintain this rhythm, current correction should not be viewed negatively rather utilise to accumulate quality large and midcap companies as we expect Nifty to find strong buying demand in 16900-17100 zone.

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer