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Technical Outlook

Equity benchmarks snapped their two week’s losing streak and concluded truncated week on a positive note as the Nifty settled at 17916, up 1.4%.In the coming session, the index is likely to open on a positive note amid soft Asian cues. We expect, index to trade with a positive bias while sustaining above Thursday’s low of 17900. Hence, use dip towards 17920-17955 for creating long position for target of 18039

The lack of faster retracement on either side signifies prolonging of ongoing consolidation (17600-18200) amid stock specific action as we do not expect Nifty to breach October low of 17500. The bouts of secondary correction after 20% rally is a common phenomenon. In current scenario, index is undergoing secondary correction after 20% rally seen over past three months (15513-18604) which will make market healthy. Hence, ongoing corrective phase should not be construed as negative, instead dips should be capitalised on to build quality portfolio over medium term.

Nifty Weekly Chart

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