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Technical Outlook

Equity benchmarks snapped past two sessions losing streak and ended on a positive note amid firm global cues. The Nifty settled the weekly expiry session at 14406, up 110 points or 0.8%. In the coming session, follow through strength above Thursday’s high (spot-14425) would lead to acceleration of upward momentum, else consolidation amid stock specific action. Hence, use intraday dip towards 14300-14325 to create long for target of 14413.

The index has managed to hold the lower band of consolidation (14200) despite elevated volatility owing to surging Covid-19 wave 2 across India, highlighting inherent strength. Going ahead, we expect index to consolidate in the 14600-14200 range with stock specific action amid progression of Q4FY21 result season. A decisive close above 50 days EMA (14600) which has been acting as immediate hurdle, would open the door for extended pullback towards 14800. Bank nifty which was underperforming has shown initial sign of base formation and remains a key component to watch.

Nifty Daily Chart

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