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Technical Outlook

Equity benchmarks snapped seven sessions winning streak amid mixed global cues and settled Wednesday’s session at 17076, down 56 points or 0.3%. In the coming session, index is likely to open on a flat positive note amid muted global cues. We expect the index to trade with positive amid elevated volatility owing to weekly derivative expiry. Hence after a flat to positive opening use intraday dips towards 17055-17085 to create long for target of 17175.

We believe, a decisive close above 17200 would open the door for next leg of up move towards revised target of 17600 in coming weeks. Else consolidation in 17200-16900 range amid stock specific action that would make market healthy after past five weeks 11% rally, which hauled daily and weekly stochastic oscillator in overbought territory, indicating round of temporary breather from here on can not be ruled out. Thus, any dip should be capitalised to accumulate quality stocks as over past fifteen months buying on declines strategy has worked well

Nifty Weekly Chart

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