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Technical Outlook

Equity benchmarks settled marginally lower on Wednesday despite a recovery in the second half on the back of strength in banking heavyweights. The Nifty closed the session at 17353, down marginally by 0.1%. In the coming session, index is likely to open on a soft note amid weak Asian cues. We expect the index to trade in a range and consolidate its recent gains. In the last two sessions the index is seen facing hurdle around 17400 levels, hence use pullback towards 17390-17415 for creating short position for target of 17305

We expect index to undergo a healthy consolidation amid stock specific action while sectoral rotation would continue, which is a sign of healthy structural uptrend. Our broader positive stance is intact with Nifty gradually heading to 17600 in September 2021 as it is the price parity of July-August rally (15515-16700), projected from mid-August low of 16376. Hence, we recommend sticking to a buy on decline strategy in to accumulate quality stocks as over past 15 months such strategy has worked well

Nifty Daily Chart

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