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Technical Outlook

Equity benchmarks snapped past four sessions winning streak and concluded Wednesday’s session on a subdued note amid muted global cues. In the coming session, index is likely to witness gap down opening tracking weak global cues. We expect Nifty futures to bounce from intraday key support of 15650 levels and witness stock specific action amid expiry induced volatility. Hence, use intraday dip towards 15660-15690 to create long for target of 15774.

We believe, extended breather after past 8 weeks 12% rally (14151-15902) would make market healthy by cooling off the overbought conditions (currently weekly stochastic oscillator is placed at 93) and gradually pave the way to head towards our earmarked target of 16100 in June 2021. We believe, intermediate bouts of volatility should not be construed as negative, rather traders can use temporary breather to their advantage to build long positions by accumulating quality large cap and midcap stocks, as we observe elevated buying demand around 15500 over two weeks. .

Nifty Daily Chart

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