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Technical Outlook

Equity benchmarks extended losses tracking weak global cues post US FOMC meet outcome. The Nifty ended the week at 15294 down 5.6%. In the coming session, index is likely to open on a flat note tracking mixed Asian cues. We expect correction bias to continue as long as lower high-low formation maintained. Hence, use intraday pullback towards 15360-15392 for creating short position for the target of 15271

The breakdown below key support of 15700 along with across sector sell-off indicates extended corrective phase towards next major support zone of 14800-14600 in coming weeks. However, bearish extreme readings on momentum and sentiment indicator suggest that going aggressive short at lower levels should be avoided as technical pullbacks could not be ruled out. Going ahead, for a meaningful pullback to materialise, index needs to form higher highlow on weekly timeframe along with improvement in market breadth. In the process, 15800 will act as key resistance on up side.

Nifty Daily Chart

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