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Technical Outlook

Equity benchmarks snapped past two session’s winning spree and settled Wednesday’s session at 18211, down 57 points or 0.3%. In the coming session, index is likely to open on a soft note tracking muted global cues. We expect, index to consolidate in 18100-18250 range amid rise in volatility owing to monthly expiry session. Hence, use dip towards 18135-18165 for creating long position for target of 18255

Going ahead, we expect index to consolidate in the broader range of 18600- 18000 with a stock specific action amid progression of Q2FY22 result season. Key point to highlight during recent corrective phase is that, over past seven session index has retraced 50% of preceding ten sessions rally (17452-18604). The slower pace of retracement signifies healthy consolidation. In the process, we expect Bank Nifty to relatively outperform the benchmark and drive index higher as banking components carries 37% weightage in Nifty. Thus, any dip from here on towards should be capitalised on to accumulate quality stocks.

Nifty Daily Chart

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