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Technical Outlook

Equity benchmarks snapped three sessions losing streak and concluded monthly expiry session on a positive note. The Nifty settled Thursday's session at 16170, up 144 points or 0.9%.In the coming session, index is likely to witness gap up opening tracking positive global cues. We expect index to trade with a positive bias and form a higher high-low formation that could confirm rejuvenation of upward momentum. Hence, use intraday dip towards 16184-16210 for creating long position for the target of 16298

The revived traction in banking stocks helped Bank Nifty to resolve above past two weeks high, indicating pause in downward momentum. Going ahead, follow through strength in Bank Nifty (which carries 35% weightage in Nifty) would drive Nifty towards upper band of consolidation placed at 16400. Further, broader market participation would be required for a sustainable pullback towards 16800 in coming weeks else there would be prolonged consolidation in 16400- 15700 range. In the process, bouts of volatility owing to global concerns can not be ruled out. Hence, any dips from here on should be capitalised on to accumulate quality stocks in a staggered manner.

Nifty Daily Chart

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