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Technical Outlook

Equity benchmarks extended winning streak over 3rd consecutive week amid lower crude prices, softening yields, and favourable global cues. Nifty ended week at 17398, up 1.4%. In the coming session, index is likely to open on a flat note tracking muted global cues. We expect index to trade with a positive bias while Nifty sustains above 17300 mark. Hence, use intraday dip towards 17320-17355 for creating long position for the target of 17439

We reiterate our positive stance and eventually expect Nifty to head towards 17900 levels in coming weeks as it is 80% retracement of entire decline off October 2021 to June low (18600-15200). Thus, any temporary breather in the upcoming truncated week should not be construed as negative instead buy on dips strategy should remain in focus as we do not expect index to breach the key support of 16900. Structurally, the formation of higher high-low underpinned by broader market participation makes us confident to revise support base at 16900 as it is 50% retracement of most recent rally (16438-17407) coincided with the positive gap seen on July 29, 2022 (16930-17018).

Nifty Daily Chart

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