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Technical Outlook

Equity benchmarks remained flat as stock specific action prevailed amid weekly expiry. The Nifty ended Thursday’s session at 17610, down 6 points. In the coming session, index is likely to open on a flat note amid mixed Asian cues. We expect, index to prolong ongoing consolidation with a stock specific action amid elevated volatility. Thus, intraday pullback towards 17600-17632 should be used to create intraday long positions for target of 17719

Going ahead, prolonged consolidation in the range of 18000-17300 above 200 days EMA would result in a base formation at key supports while absorbing Fed event and concerns about banking NPAs. In the process, stock specific action would prevail amid progression of earning season. The extended correction from here on should be capitalised on to accumulate quality stocks in a staggered manner as we believe strong support is placed in the range of 17500-17300, being confluence of key long term moving averages like 200 days EMA and 52 weeks EMA. Meanwhile, on the upside psychological mark of 18000 that coincides with Budget day high and 20 days EMA, would act as immediate resistance.

Nifty Daily Chart

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