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Technical Outlook

Equity benchmarks snapped four weeks winning streak amid subdued global cues. Nifty concluded the week at 15683, down 0.6%. In the coming session, index is likely to witness gap down opening tracking subdued global cues. However, post initial blip we expect index to attempt a pullback from 15500 levels being 80% retracement of Friday’s recovery (15450-15729). Hence, use intraday dip towards 15490-15517 to create long for target of 15604.

In the coming expiry week, we expect index to consolidate in the broader range of 15900-15400 amid stock specific action. The ongoing healthy consolidation would help index to cool off the overbought conditions and form a higher base. The broader structure remains bullish thereby we reiterate our positive stance of Nifty heading towards earmarked target of 16100. However, bouts of volatility from here on cannot be ruled out which would offer incremental buying opportunity in the range of 15300-15500. Structurally, we believe extended breather from here on would get anchored around 15200.

Nifty Daily Chart

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