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Technical Outlook

Equity benchmarks snapped past three weeks decline and concluded the week at 14631, up 2%. In the coming session, index is likely to witness gap down opening tracking weak Asian cues. However, we expect index to hold last week’s low of 14420. Hence, use intraday dip towards 14400- 14425 to create long for target of 14512.

Going ahead, we expect index to consolidate in the broader range of 14900-14200 with stock specific action amid progression of Q4FY21 result season. The index has rallied ~900 point during current up move (14151-15044) which had hauled daily stochastic oscillator in overbought condition at 93. Hence, temporary breather from hereon would help index to cool off the overbought conditions and make market healthy. We believe such breather should be capitalised as incremental buying opportunity in quality stocks as we expect index to head towards 15400 in coming months.

Nifty Weekly Chart

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