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Technical Outlook

Equity benchmarks snapped their three sessions winning streak and concluded the session on a negative note tracking subdued global cues. The Nifty ended Tuesday’s volatile session at 17749, down 106 points or 0.6%. In the coming session, the index is likely to witness gap down opening on the back of subdued global cues. Post gap down opening, we expect supportive effort should be seen around 17500 levels. Hence, use intraday dips towards 17570-17592 for creating long position for target of 17684.

Going ahead, we expect 17400 to hold while psychological mark of 18000 remains a short term hurdle. We expect index to undergo healthy consolidation in 18000-17400 range and then eventually head towards our earmarked target of 18200 in coming month as it is implied target of recent consolidation breakout (17800-17325). Sectoral churn over past few weeks with new set of stocks exhibiting leadership is a healthy sign for overall structural trend. Therefore, extended breather from hereon should not be construed as negative instead dips should be used as incremental buying opportunity.

Nifty Daily Chart

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