IGI Logo

Technical Outlook

Equity benchmarks extended pullback over second consecutive session backed by firm global cues. The Nifty ended the session at 16955, up 184 points or 1.1%. In the coming session, the index is likely to open on a positive note tracking buoyant global cues. We expect index to trade with a positive bias amid elevated volatility owing to weekly derivative expiry. Hence use dip towards 16988-17010 for creating long position for target of 17098

Key point to highlight is that, the Nifty has settled above previous session high 16936 (on a closing basis) and filled Monday’s negative gap (16966-16840), indicating abating downward momentum. Going ahead, we expect index to resolve higher and extend the ongoing pullback in tandem with global peers, towards 17200 as it is confluence of a) 61.8% retracement of last leg of decline (17640-16410), at 17170 b) 100 days EMA is placed at 17150. However, the northbound journey from hereon will be in a zigzag manner. Hence any dip from here on should be capitalised to accumulate quality stocks in a staggered manner.

Nifty Weekly Chart

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