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Technical Outlook

Equity benchmarks regained upward momentum on Wednesday after two day’s breather. The Nifty concluded Wednesday’s session at 16642, up 158 points or 1%. In the coming session, index is likely to open gap up tracking firm global cues. We expect the index to trade with positive bias while maintain higher high-low. Hence, after a positive opening use intraday dip towards 16680- 16712 for creating long position for the target of 16797

The index has undergone slower pace of retracement ahead of U.S. Fed meet outcome, as over past three sessions it retraced 38.2% of preceding six sessions sharp up move (15858-16752) highlighting inherent strength. This eventually helped daily stochastic oscillator to cool off the overbought conditions. Going ahead, we expect index to resolve higher and gradually head towards psychological mark of 17000 in coming sessions as it is 61.8% retracement of AprilJune decline (18114-15183). Thus, any dip from hereon should be capitalised as incremental buying opportunity.

Nifty Daily Chart

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