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Technical Outlook

Equity benchmarks recovered intraweek losses and concluded on a flat note. The Nifty ended the week at 14835, down 0.2%. In the coming session, index is likely to open on a negative note tracking subdued Asian cues. Formation of lower high-low signifies pause in upward momentum. Hence, use intraday pullback towards 14850-14878 to create short for target of 14764.

Our bottom-up approach signifies that outperformance of IT, pharma, consumption is expected to continue while downside will be limited in key BFSI heavyweights due to its oversold conditions. We expect index to eventually resolve above upper band of consolidation placed at 14900 and retest all time high of 15430 in coming months.

Hence, any cool off from here on should be capitalised on as incremental buying opportunity in quality large cap and midcaps as we embark upon Q4FY21 result season. In the coming truncated week, we expect index to consolidate in the broad range of 15000-14500 amid positive bias wherein broader market would continue to outperform.

Nifty Weekly Chart

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