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Technical Outlook

Equity benchmarks extended winning streak over fourth consecutive session and concluded Wednesday’s session at 15301, up 93 points or 0.6%. In the expiry induced volatile session, we expect index to trade with a positive bias amid stock specific action. Hence, use intraday dip towards 15252-15278 to create long for target of 15365.

The formation of higher high-low supported by rotational sectoral leadership highlights broader participation that supports our stance of Nifty challenging lifetime high of 15400 in coming sessions and eventually head towards revised target of 15700 in the month of June, as it is 123.6% external retracement of Feb-April Correction (15432-14151). Hence, any temporary cool off from here on should be capitalised as incremental buying opportunity in quality large cap and midcaps. During current up move off May low (14416), the secondary corrections have been shallower in nature, highlighting elevated buying demand. In the process, market breadth has improved which augurs well for durability of ongoing up trend.

Nifty Daily Chart

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