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Technical Outlook

Equity benchmarks reacted sharply lower amid global sell off triggered by escalation in geo political tensions. Nifty closed the session at 16842, down 532 points or 3% for the day. In the coming session, index is likely to open on a positive note tracking flat Asian cues. The formation of lower high-low on daily chart signifies corrective bias amid elevated global volatility. Thus, after a positive opening use pullback towards 16972-17002 for creating short position for target of 17038

Going forward, a decisive close below key support of 16800 and 200 days EMA (placed at 16700) would lead to further acceleration of decline towards 16400-16300 as it is confluence of: a) December 2021 lows of 16410 b) 52 weeks EMA placed at 16340 c) Equality of current down leg from February high of 17794, with mid-January decline at 16300

On the higher side 17100 is expected to act as immediate key resistance. The index needs to form a series of higher high-low on sustained basis for any meaningful pull back to materialize else extended corrective decline to continue

Nifty Daily Chart

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