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Technical Outlook

Equity benchmarks snapped their two weeks losing streak and settled the week on a positive note as anxiety around new Covid variant settled down. Nifty ended at 17197, up 1%. In the coming session, the index is likely to open on a flat note amid mixed global cues. We expect buying demand to emerge around 100 days EMA. Hence, use dips towards 17130-17162 for creating long position for target of 17247.

Going ahead, we remain optimistic on the market as we expect index to undergo a base formation in the broader range of 17500-16800 wherein stock specific action will continue. Thus, extended breather from hereon should not be construed as negative instead dips should be capitalised to accumulate quality stocks as we do not expect Nifty to breach the last week’s panic low of 16800. For the coming week, 17500 would act as immediate resistance as it is confluence of: a) 50 days EMA is placed at 17566 b) 50% retracement of recent decline (18210-16782) at 17496. c) Last week’s high is placed at 17490.

Nifty Weekly Chart

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