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Technical Outlook

Equity benchmarks kick started the CY22 on buoyant note amid firm global cues. The Nifty ended the week at 17813, up 2.6%. In the coming session, the index is likely to open on a positive note amid mixed global cues. We expect the index to continue with its positive momentum while maintaining higher high-low. Hence use intraday dip towards 17850-17882 for creating long position for target of 17967

Going ahead, we expect Nifty to endure ongoing up move and head towards 18200 in coming weeks. Our constructive thesis on the market is based on following observations: a) The Nifty and Bank Nifty exhibited follow through strength after recording falling channel breakout. Thereby confirming conclusion of corrective phase b) Since June 2020, on multiple occasions elevated buying demand emerged from 5 months’ average that paved the way to challenge life highs in subsequent months. In Current scenario as well index rebounded from 5 months’ average. Thereby offering fresh entry opportunity from medium term perspective c) The across sector participation along with improving market breadth augurs well for longevity of the bull trend.

Nifty Weekly Chart

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