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Technical Outlook

Equity benchmarks pared morning gains and settled Tuesday’s session on a subdued note amid elevated global volatility. The Nifty ended at 16983, down 71 points or 0.4%. In the coming session, the index is likely to open on a positive note amid firm Asian cues. We expect volatility to remain high around key support of 16900 amid oversold placement of weekly stochastic oscillator. Hence, use dip towards 16970- 17002 for creating long position for target of 17086

Going ahead, we expect index to undergo a base formation around key support zone of 16900-16700 wherein stock specific action will prevail. However, for a meaningful pullback to materialise the index needs to decisively close above previous sessions high. Else continuance of lacklustre move amid stock specific action. Thus, dips should be capitalised on to accumulate quality stocks as we do not expect Nifty to breach key support threshold of 16900-16700. Meanwhile, 17600 would continue to act as immediate hurdle being 50 days EMA.

Nifty Weekly Chart

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