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Technical Outlook

Equity benchmarks pared some of Tuesday’s gains amid mixed global cues and settled Wednesday’s session at 17415, down 88 or 0.5%. In the coming session, we expect index to consolidate amid monthly expiry induced volatility. Hence after a subdued opening use intraday pullback towards 17468-17490 for creating short position for target of 17375

We expect, volatility to remain high ahead of monthly derivative expiry session. Hence, extended correction from hereon should not be construed as negative instead dips should be capitalised as buying opportunity as we do not expect index to breach the key support threshold of 17100-16900 zone in coming weeks. Meanwhile, during Wednesday's pullback index failed to reach the 50 days EMA placed at 17700, highlighting weak pullback. Thus, 17700 would continue to act as immediate resistance. We expect markets to maintain this rhythm of arresting corrections within 9%. Thus, we expect Nifty to find strong buying demand in 16900- 17100 zone.

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