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Technical Outlook

Equity benchmarks snapped past two weeks winning streak amid volatile global cues. The Nifty concluded the week on a subdued note at 14678, down 1%. In the coming session, the index is likely to open on a positive note tracking firm global cues. We expect Nifty futures to hold Friday’s low (14620) and trade with a positive bias. Hence, use intraday dip towards 14690-14720 to create long for target of 14808

The lack of faster retracement on either side signifies extended consolidation (14900-14400) in coming weeks amid stock specific action that would help index to form a higher base. Meanwhile, our medium-term view of 15400 remains intact. Hence, traders can use bouts of volatility to their advantage to build long positions by accumulating quality large cap and midcap stocks amid progression of Q4FY21 earning season. Structurally, we do not expect the index to breach the key support threshold of 14200.

Nifty Weekly Chart

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